Simple energy trick costing you $171

Perth Now

21-05-2025

Australian consumers are getting ripped off $171 a year on their power bills due to remarkably simple trick by the electricity providers.
According to research by Choice, Australians are getting ripped off by their power company due to deliberately confusing names.
Choice alleges electricity providers are using the same name on two different energy plans, meaning unexpected Aussies are paying more for their power than they need to. Households could be paying $171 more than they should on their electricity bills. NewsWire / Emma Brasier Credit: News Corp Australia
Choice chief executive Ashley de Silva said it shouldn't be this hard to know if you're being ripped off on your energy bill.
'The potential impact of this practice is significant,' says De Silva.
'Choice estimates that reusing identical names for plans with differing prices could, in aggregate, be costing consumers approximately $65 million in savings.'
In a lodgement to the ACCC the consumer group claims electricity providers deliberately make it harder for Australians to switch plans.
The Australian Energy Regulator added a requirement in September 2023, forcing the energy retailers to make it easier for consumers to understand.
As part of these changes power companies have to tell customers on their bills if they have a cheaper plan available and how much they could save by switching.
The guideline requires a compulsory 'better offer' statement on the first page of the bill, under the heading 'Could you save money on another plan?'
Choice claims to have collected almost 400 energy bills from January to March 2025, finding 64 energy plans have identical names. The Australian Energy Regulator says households power bills could rise between 2.5 and 8.9 per cent depending on where a person lives. NewsWire / Nikki Short Credit: News Corp Australia
As such, Choice alleges Australians believe they are on the cheapest plan possible and are paying more than they should for electricity.
'Across these 64 examples, people could have saved an average of $171 annually had they switched to the cheaper plan, even though it had the same name.
'The highest potential savings amongst these examples was $588 per year.'
Ms De Silva said the energy market is already difficult for Aussie households to navigate without the need for misleading practices such as using the same name on plans.
'At a time when we're all looking for ways to save, energy companies are making it harder and harder to know what you're paying and why,' De Silva said.
'This practice is extremely confusing, and potentially misleading or deceptive.
'Supporters who shared their bills with CHOICE often thought that the offer to save money by switching to a plan with an identical name was a mistake, and likely missed out on significant savings.'
The submission to the ACCC comes on the eve of millions of Australians paying more for their power.
Australian Energy Regulator (AER) has released its latest default market offer (DMO) draft determination in April which is the maximum households living in NSW, South Australia and South East Queensland will be paying.
Under the draft, households' power bills could rise between 2.5 and 8.9 per cent depending on where a person lives.
Small business customers could see rises between 4.2 and 8.2 per cent.