Competition good for Australia's electricity prices

Whether it's a tight game of footy, an Ashes test match or holding our own at the Olympics, we Aussies do enjoy a bit of contest.

But how do we feel about it in the electricity market?

The 2015 National Energy Retail Competition Review from the Australian Energy Market Commission (AEMC) shows that it's good for customers.

The rationale behind removing electricity price regulation - otherwise known as deregulation - is that it encourages more energy suppliers to operate, leading to a raised level of competition, productivity and efficiency - which inevitably results in a better deal for consumers, according to the NSW government.

In light of this, just how well is Australia's electricity contest performing?

By shopping around for the best deal you could save up to $400 a year.

What states have the best competition?

It's good news if you live in NSW, Victoria, South Australia or South-East Queensland, as AEMC's report found competition in these markets is having a positive effect on electricity prices for the consumer.

There's between 11 and 21 energy retailers in each of these regions, all offering a scope of different energy plans. This has increased from just 12 months ago, which indicates the market is still developing. Furthermore, market concentration has diminished, meaning the power is spread more evenly amongst the electricity suppliers.

The benefits of shopping around

The AEMC report found that of the residential customers surveyed, 31 per cent had been actively looking into energy options from different retailers over the previous 12 months.

It's not hard to see why, either, as the report asserts that by shopping around for the best deal you could save up to $400 a year.

Respondents who had knowledge of electricity comparison websites were substantially more informed about the multitude of electricity suppliers available. Therefore, they were also more assured they could find a good deal.

Are people happy?

In an astonishing number, 31 per cent of those surveyed weren't satisfied with their current electricity provider.

Meanwhile, 78 per cent of people who had switched energy suppliers were happy with their decision. It is important to note that an energy offer that is great value for one customer may not suit another with different needs or consumption habits.

Where next for electricity prices?

If you would like to compare deals from a leading panel of electricity suppliers in your area, talk to the team at Make It Cheaper. We will do the job for you completely free - even transferring you to the new rates.