All you need to know about electricity’s “lazy tax”
You may have heard of the “lazy tax” – may be at a dinner with friends or in the workplace while sharing your “bill-shock” woes with your colleagues. Also called the “loyalty penalty”, the lazy tax is nothing but the price you pay for not regularly shopping around and swapping power companies for a better deal on energy.
Many consumers shop for a good energy deal once and never shop again. A year later they get a bill and find that the great deal they got is no longer competitive or worst the discounts have been cancelled. Those on a direct debit arrangement may not even notice how much they’ve paid for energy until much later.
There may be numerous reasons for people to not shop around. Some people don’t like unnecessary change or simply find it time-consuming and inconvenient to research, call, negotiate and change contracts – and repeat this cycle every year. Sometimes, “life” gets in the way and such things are put on the backburner but unfortunately, this results in being slapped with a hidden premium.
We don’t believe that sticking to one provider equates to being lazy but sadly, big energy retailers price their services in a such a way that customers enter through an attractive deal but end up paying hefty tariffs due to inaction. Consumers who don’t shop every year lose the discount or find that their discount is much less than what new customers are getting.
Paying a price on loyalty
The latest AEMC (Australian Energy Market Commission) retail energy competition review revealed that in Victoria, up to one-third of customers with big energy retailers are on poor deals. The report also unveiled that companies use aggressive “win back” rates at discretion to retain customers who threaten to leave.
While companies in other sectors reward you for brand loyalty, energy retailers charge you for it and in fact, reward those who proactively shop around and threaten to leave. How is that fair and acceptable?
We created Elysian Energy to give consumers a fair go. Elysian Energy is an Australian start-up that will be providing electricity in Victoria by the end of this year. We are disrupting the market with fair, consistent and honest pricing because that’s simply what consumers deserve. With us, you won’t have to worry about paying the “lazy tax” nor will you find big discounts or special deals advertised. Instead, we’ll be the first ones to reimburse you for overpaying and the first to tell you a plan that will save you more money.
Watch this space for more news on our launch and to know more about our fair pricing structure, click here.