What does it really mean to get a fair deal on electricity?
The popular adage “it pays to shop around” is often heard during this time of the year, just as people are hit with the mid-year electricity price hike. This saying is no more than a reminder to spring people into action and urge them to try getting a better deal because if they don’t, they simply miss out.
What happens when you don’t shop around?
Energy retailers compete on price and this means that they often lure customers into contracts with big sticker discounts. In 2016, the Australian Energy Market Commission Retail Competition Review found that Australians can save as much as 30 per cent, or $380 a year from shopping around for a better deal!
If you’re a customer who reads your energy bills with interest, takes note of the fine print, compares prices, stays up-to-date on tariff changes and puts in time and effort to negotiate a better deal, it’s highly likely that you’ll nab a discount with your current provider.
No doubt this will save you money in the short-term. That is because these discounts don’t often last the full term of the contract and if you take a back seat within the next few months and forget to revisit your contract, you’ll be hit with higher tariffs again.
It’s a vicious cycle that has to keep going in order to remain on a ‘good deal.’ However, not everyone is a savvy negotiator. If you’re unsuccessful in landing a discount or just don’t have the time to engage in a time-consuming telephone discussion, you’re likely to be paying lots more than someone else who’s been offered a discount.
Is it fair if one customer pays more than another for the same service? Is it fair that you pay a higher price just because you didn’t haggle? We don’t think so.
What is a big discount?
A big discount is not based on a regulated charge nor is it based on what other energy retailers are charging. The reality is that a big discount is based on what an electricity retailer charges its most uninterested customers. Yes, it’s true that most retailers often have ‘better deals’ that are used as a reserve should they be at risk of losing a customer to another competitive retailer.
We believe that every customer has the right to get the same competitive rate. That’s why at Elysian Energy, we do not offer misleading discounts that don’t last the full life of the contract. We believe in consistently low prices, and that’s why we’re entering the market this year with monthly pre-paid plans that clearly define what you’ll pay and what you’ll get in return. Any differences in electricity usage will be clearly acknowledged in your next bill and reimbursed to you. Getting a fair price on your electricity can be as simple as that!