You could be paying one of the market’s highest rates.
Loyalty Tax. It’s a thing, and if you haven’t switched up your home energy deal in the last year, you’re probably paying it. There’s often a huge difference between the discounted rate you receive when you first sign your contract and the rate your supplier puts you on when that 12 -24 month discount period ends.
Depending on where you live in Australia, you could be paying, $250, $300, $500, $800 too much annually! That’s ridiculous, and often avoidable.
So if you haven’t switched things up in the last year, or moved into a house recently and didn’t choose the energy provider that accompanied the property – there may just be hundreds of dollars in savings to be had.
But Why Am I Paying So Much More As a Loyal Customer?
It doesn’t seem fair, does it? You stay with one supplier for years, yet your loyalty is met with far higher fees than customers who have just joined.
That’s where standing offers and market offers come into play.
A standing offer is the amount of money you automatically default to in most situations. If you don’t actively choose the market offer, or your contract on the discounted market offer comes to a close, you will automatically be paying a higher set rate. The price is higher to make up for consumers with bad credit and various other risks, which essentially means you’re paying for protection against issues you don’t personally have any involvement in.
Market offers, on the other hand, are usually significantly cheaper options because they offer a range of discounts for things like paying on time and other reliable payment plans. These factors apply to several consumers so earning these discounts often falls within normal payment practices anyway.
How Can I Start Paying Less?
Understandably, you’re probably wondering how you can get yourself onto a better energy deal. There are a couple options you could try:
- Ask your company if you’re currently on a standing offer and if there are any better deals they can offer you.
- Compare and contrast the best market deals out there and consider making a switch to a cheaper supplier that caters to your unique needs.
Unless you’ve already done a lot of research and are incredibly happy with your current supplier, we recommend comparing your options. When you do it with the help of a trusted comparison company like Seek the Deal, receiving a personalised list of energy options best suited to your needs is simple, efficient, and completely free of charge.