How to Compare Energy plans and lower your energy costs in 2025

The energy market can be confusing and overwhelming, especially with recent discussions around price regulations and market offers.

But there's a way to make the process simpler and find the best energy deals in your area - and that's where Compare Energy comes in.

In Australia, energy pricing mechanisms are in place to protect consumers, but recent developments have shown that these systems may not be working as they were intended.

For instance, electricity price caps, such as the Default Market Offer (DMO) and the Victorian Default Offer (VDO), were originally designed as safety nets for customers who didn’t sign up for market offers. The idea was to protect vulnerable consumers while encouraging competition between energy retailers, ultimately driving prices down.

However, it’s becoming clear that the current system has led to unexpected outcomes. The DMO and VDO set maximum prices for retailers to charge customers on standing offer contracts. While these caps provide a safety net, they also serve as a benchmark for market offers.

As a result, when these caps increase, market offers tend to follow suit, making it harder for customers to secure better deals.

The real issue: People are paying more than they need to

Minister for Climate Change and Energy, Chris Bowen, recently pointed out that the vast majority of customers on market offers are likely paying more than they should.

According to the Australian Competition and Consumer Commission (ACCC), over 80% of households within the National Electricity Market (NEM) are on plans that cost them more than necessary. In fact, households on offers older than 12 months could be paying, on average, an additional $238 per year compared to those on newer plans.

The issue lies in the fact that finding a better deal can be complicated and time-consuming. Consumers are often required to put in substantial effort to research available plans, compare offers, and navigate confusing terms and conditions.

While electricity retailers are supposed to inform you about the best deals, the messaging can often be unclear or difficult to understand, leaving many customers uncertain whether they’re truly on the best plan for their needs.

Compare Energy makes it easy

With so many retailers and offers available, finding the best energy deal can feel like a daunting task. That’s why Compare Energy is the smart choice for anyone looking to compare energy plans in their area. We provide a straightforward platform where you can easily compare energy plans from various providers, ensuring you’re getting the best possible deal.

By using Compare Energy, you eliminate the hassle of searching through multiple websites or dealing with confusing bill messages. Our comparison tool takes into account all the relevant factors, from pricing to service quality, to help you make an informed decision.

Whether you're based in New South Wales, Queensland, South Australia, Tasmania, or Victoria, we have tailored solutions for every region to ensure you're getting the most competitive deal available.

What’s being done to protect consumers

While the government has been working on reforms to improve the energy pricing system, it’s clear that these changes will take time to be fully implemented. In 2026, a reformed pricing mechanism is expected to make the market more transparent, with the goal of providing consumers with the best deals while still ensuring a cap on standing offers in regions covered by the DMO.

This new system may include stripping out competition allowances and placing further restrictions on what retailers can charge.

The government is focusing on making the energy market more aligned with the increasing uptake of renewable energy sources, such as rooftop solar panels and home batteries. This is expected to lead to greater savings and more sustainable options for consumers.

But why wait for these long-term changes? You don’t need to sit back and wait for reforms to take place. There are immediate steps you can take to reduce your energy costs.

Simple steps to lower your energy bills

One of the easiest ways to start saving is by contacting Compare Energy and letting them know you're considering switching providers. Many customers have reported success in negotiating better deals simply by expressing their intention to shop around.

While energy retailers are required to show you the best offer available through notifications on your bill, these messages are not always clear, which is why it’s important to double-check and make sure you’re on the best deal.

If you’re looking for a quick, hassle-free way to compare energy plans, Compare Energy offers a simple comparison tool that allows you to review all available offers in your area. Whether you have solar panels or not, our platform helps you find the most affordable and suitable energy plans for your home or business.

In regions like Victoria, the state-run Victoria Energy Compare platform is another option, but Compare Energy gives you a broader, more comprehensive look at plans across various states, including New South Wales, Queensland, South Australia, and beyond.

Don’t wait for the reforms - start saving now

While it’s important to be aware of upcoming reforms and market changes, why wait until 2026 to start saving? Compare Energy allows you to act now and get the best energy deals available in your area. Switching energy providers is quick and easy, and with our expert comparison tool, you can find the right plan in just a few minutes.

Whether you’re looking to lower your energy bills, take advantage of renewable energy options, or simply get more transparency in your energy choices, Compare Energy is your trusted partner in comparing energy plans.

Call Compare Energy for expert advice

If you’re unsure where to start or need assistance with understanding your options, don’t hesitate to get in touch with Compare Energy. Our team is ready to provide you with expert advice and guide you through the process of finding the perfect energy plan for your needs.

Call Compare Energy at 1300 790 106 today and start saving on your energy bills with the best plan for your home.