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Winter is coming: take control of your power bill

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This week saw many parts of Australia shivering through the first icy chill of the season in a preview of what awaits us over the next few months.

If you were affected by the cold snap, the chances are you gave your heater – electric, gas, or otherwise – a bit of work out this week. And with that, no doubt, came the old niggle, “How much is this costing me?”

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For many Australians, the quarterly energy bill is one of the biggest household expenses. But the good news is you can do something about it.

In fact when it comes to your power bill, experts say it’s you who holds the power.

Take control

Perisher resort says it will be extending its ski season until mid-October.

Does a prolonged cold spell need to break the bank?

Your first stop should be the Federal Government’s website www.energymadeeasy.gov.au. It offers a simple comparison on all electricity and gas retailers for those living in NSW, Queensland, Victoria, the ACT, South Australia and some residents of Western Australia.

By entering your postcode and your usage details, the site will serve up the best and cheapest provider. Currently Tasmanian and Northern Territory residents are restricted by choice, with Tasmania completely serviced by Aurora Energy and the majority of the NT by Power & Water Corporation.

Consumer advocate Christopher Zinn says it pays to do your research and that the privitisation of energy in some states is making prices more competitive.

“Deregulation gives people the opportunity to make savings. Electricity has stopped going up in price because of various reforms and the end of the carbon tax so you just need to look for the best deal.”

Contact your provider

In fact the best deal may be with your current provider. Never underestimate the power of a phone call to see if you are getting the most out of your existing connection.

Consumers can also receive discounts by setting up a direct-debit to ensure their bills are paid on time or if they bundle electricity and gas together. Signing up to a contract can also offer benefits, but be aware of any exit fees you may pay if you change your mind.

Some customers are also eligible for concessions. If you or anyone in your household receives Centrelink benefits or has a Senior’s Card, make sure your provider has applied eligible concessions to your account.

polesandwires

Same wires, different providers. Take your pick.

Zinn recommends consumers start with the Federal government’s comparison website, but there are a raft of other companies willing to help Australians switch to a better provider, such as Choice and Finder.com.au. It’s worth noting however that some comparison sites do not have access to the whole marketplace, meaning you may miss out on some better offers.

Be wary too, of fraudulent scams. Christopher Zinn says reputable energy companies will never knock on your door offering a better deal, and you should never feel pressured by telemarketers.

If you feel you have been scammed, or simply change your mind about changing energy providers, there is a 10-day cooling-off period meaning you can change your mind and cancel the business contract within ten working days.

Money expert Michelle Hutchison from Finder says there are other ways to reduce your power bill. She recommends turning off electrical devices at the power point when not in use or if you’re away from home, to cut back on big bills. Other tips include ensuring your whitegoods are as energy efficient as possible.

“This can make a huge difference in your power bill,” says Hutchison. “Look for 4 to 5 stars, it’s a false economy if you get anything 3 stars and below because it’s going to end up costing you more down the track.”

Concerned about your carbon footprint?

The desire for cleaner, greener energy is also changing Australians’ attitudes to their energy providers. Australia has a renewable energy target (RET) of 20/20 which aims to make sure at least 20 per cent of Australia’s electricity supply will come from renewable energy by the year 2020.

Greenpeace has ranked Australia’s electricity providers, allowing consumers to see if their provider is as ‘green’ as it claims to be. The Green Electricity Guide currently places market leaders Origin Energy, AGL and Energy Australia towards the bottom end of its green scale. It calls the providers, “The Dirty Three”, for undermining Australia’s RET.

Diamond Energy, which is available in NSW, Queensland, Victoria and South Australia gets Greenpeace’s tick for being the most energy efficient. Tasmania’s government-owned Aurora Energy also does well on the environmental scale, because most of the energy it buys comes from hydro.

Greenpeace states there are currently no opportunities for those in WA and the Northern Territory to choose a green electricity provider. The ACT, which is dominated by ACTEW-AGL, also has no listed green provider, however its government is committed to generating 90 per cent of its electricity from renewable sources by 2020 and this target will apply to all electricity providers in the ACT.

Solar panels on a house.

Solar panels are a great option.

People power

There’s another way to combat your power bill – and that’s people power. Melbourne-based scientist Rachel Bendall teamed up with a fellow resident in her Yarra community to launch Solar Neighbourhood – using the power of collective bargaining to provide solar power to residents in her community through bulk buying, saving them around 20 per cent off the normal cost of solar power.

“People are ready to switch to cleaner energy,” Rachel says. “And whether that’s because they want to save money or help the environment, our purpose is to help people understand solar and make it more affordable.”

Rachel hopes her initiative may end up being available on a national scale.

Zinn agrees the way energy is being sold and meters are being read is changing. And he says those who do the research will end up saving the most long-term.

“It is worth the effort. It’s not as easy as it should be and it will get easier, but are you going to wait two or three years for that to happen? No – you need to do something now.”

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