Households overpaying on electricity plans, says ACCC

Households that have stayed on the same electricity plan for over three years are, on average, paying $221 more per year than those who are on newer plans. This is revealed in the latest report from the ACCC (Australian Competition and Consumer Commission).

While more customers are moving to better electricity plans, millions of Australians are still paying more than they need to. This trend highlights the importance of shopping around for better deals and switching plans.

Potential savings for households

The ACCC’s report shows that households switching from a default (regulated) plan to one of the cheaper plans available could save between $100 and $250 per year. The exact savings depend on where the household is located.

For example, in New South Wales, a household could save as much as $300 per year by simply asking their current retailer to move them to the cheapest available plan. This is a significant saving that many customers are missing out on because they aren’t switching plans.

Why loyalty penalties still exist

The report highlights that "loyalty penalties" are still common in the retail electricity market. This means that customers who stick with their current plan for years end up paying more than those who shop around or switch plans.

ACCC Commissioner Anna Brakey encourages customers to switch plans regularly to avoid these penalties. Many households could save enough money to replicate the value of the recently ended government rebates just by changing their electricity plan.

How to save money on your electricity bill

The ACCC encourages all households to look at their electricity bills to check how much they could save. Retailers are required to disclose potential savings from switching plans on the first page of every bill, which can help customers compare offers and find a better deal.

Rising electricity prices

The report also shows a 6% average increase in residential electricity bills across all National Electricity Market regions from August 2024 to August 2025. The largest price increase was in New South Wales, where bills went up by around 9%, followed by Southeast Queensland at about 4%.

While these price hikes are concerning, there is still a way to reduce costs by switching to a more affordable plan.

Positive impacts of ‘better bills’ reforms

The report points out that the 'Better Bills' reforms have made a positive difference for consumers. In 2024-2025, about 27% of residential customers were on their retailer’s best plan at some point, which is a significant increase from the 19% seen earlier in 2024.

More customers are now switching to newer plans (those less than a year old), indicating that people are becoming more aware of the benefits of changing plans regularly.

Competition in the retail electricity market

The ACCC also notes that competition in the retail electricity market is improving. Several new retailers entered the market in 2025, and there were no exits. This increase in choices for consumers suggests that competition is starting to work, which can lead to better deals and lower prices in the long run.

Tips for finding the best deal

  • Compare electricity plans regularly to find the best deal - the team at Compare Energy can help!
  • Check your electricity bill every three months for savings offers from your retailer. These offers can highlight cheaper plans that could save you money.
  • Consider switching retailers if your current retailer isn’t offering the best deal for you.

Broadband comparison: Save on internet plans too

In addition to comparing electricity plans, it's also a good idea to review your broadband plan. Like electricity, broadband providers often have different pricing and offers, and switching plans can help you save money.

To find the best broadband deals for your needs, you can call Compare Broadband on 1300 764 000. Their team can help you compare internet plans, find discounts, and get you the most suitable deal for your household.

The ACCC’s report shows that millions of Australians are overpaying for electricity because they haven’t switched plans in years. With rising electricity prices and increasing competition in the market, now is a great time to check your plan with Compare Energy on 1300 790 000 and see if you can save money by switching. Don’t forget to review your broadband plan as well and make sure you're getting the best deal possible.

The ACCC continues to monitor the electricity market, with a final report expected in June 2026.