Bonus: Energy price hikes & saving tips

In this bonus episode of the Friends With Money Podcast, Money's Michelle Baltazar talks with Janine Young, Ombudsman at Energy and Water Ombudsman New South Wales, about effective strategies to manage and reduce winter energy bills.

The discussion includes insights on recent energy price hikes, understanding market contracts, and tips for finding the best energy deals. 

01:43 Understanding energy price increases 

04:18 Tips to save on your energy bill 

06:19 Affordability programs and final tips 

07:30 Conclusion and contact information

#friendswithmoney #michellebaltazar #janineyoung #energycosts

Story link: https://www.moneymag.com.au/how-to-get-your-energy-bills-ready-for-winter

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Episode Transcript

Speaker 1 (00:01):
Welcome to the Friends with Money podcast, brought to you
by Money Magazine, creating financial freedom for Australians since nineteen
ninety nine.

Speaker 2 (00:13):
Welcome to this bonus episode of Friends with Money. I'm
your host, Michelle Baltazar. Thanks for joining us this week.
We thought we'd look at the utility bill that we
all dread during the winter months. According to research, a
typical one person household in New South Wales could spend
around three hundred dollars per quota on their electricity bill,

(00:34):
but this figure can go up to as much as
five hundred dollars during winter. For a five person household,
that bill jumps from eight hundred and forty dollars per
quota to as much as twelve hundred dollars. Out sharing
her insights on how to reduce that awful number under amount,

(00:55):
jew is Janine Young umbudsman at Energy and Water Umbudsman
use Welles Janine. Welcome to Friends with Money.

Speaker 3 (01:03):
Thanks Michelle. Great to be here for.

Speaker 2 (01:05):
Those who are not familiar with the great work that
you do. Tell us what is the role of an
energy ombitsman?

Speaker 3 (01:12):
So we're there to provide free, fair and independent advice
and dispute resolution. For people that can't resolve a complaint
directly with their energy or water provider. Will resolve about
twenty eight and a half thousand complaints this financial year.
So if people need us, we're there for them.

Speaker 2 (01:30):
Sounds like a lot, but it also goes to the
heart of this need to really try and resolve whether
you've overpaid or you've been overcharged. Now I want to
go straight to the news item, what's happening from July
one this year and why?

Speaker 3 (01:47):
So every year the Australian Energy Regulator puts out advice
about what the current default market offer is for electricity
and from one July this year, so just in about
a month's time or thereabouts, the average increase across New
South Wales will be between eight and nine percent for
residential customers and between seven point nine and eight point

(02:11):
five percent for small business customers. So that comes on
what's happened over the past three years where we've seen
energy pricing increase by over forty percent, so those bills
have really got high for very many people.

Speaker 2 (02:26):
That's insane. Now forgive me, I'm not familiar with what
happens elsewhere like in other stats, is it roughly the
same thing the same changes the same number.

Speaker 3 (02:36):
It does vary, so it is increasing. So the national
energy market where the Australian Energy Regulator oversights, so that
includes Canberra, South Australia, Tasmania, Queensland. There are price increases
across all of those states and territories of different amounts.
I think New South Wales is a bit higher than

(02:57):
the other states, and in Victoria the Essential Services Commission
has also recently announced a price increase from one July
as well. So yes, energy bills are going up and
people need to make sure that they're getting the best offer.

Speaker 2 (03:12):
This sounds like a silly question, but surely can't we
say no to it? Is this just legislated. What's going on?

Speaker 3 (03:19):
Well, customers have choice, so that's the default market offer.
That's if you have not entered into a market contract
with your energy retailer. So what every customer should do
is ring their energy retailer and say, firstly, am I
on a market contract? If not, can you put me
on a market contract? And I want the best market

(03:41):
contract that matches with my use of electricity or gas.

Speaker 2 (03:46):
Well, and you can't see that in the statement whether
you're on a market contract or not.

Speaker 3 (03:52):
Bills now actually have information in Queensland, South Australia, Tasmania,
New South Wales will have information about the best offer
that you could be on and how much money you
could save per year. So make that phone call and
ask to be put on that rate or otherwise bring

(04:12):
a few energy retailers and shop around to get the
best rate.

Speaker 2 (04:17):
I like that idea so already. Tip number one is
to call your energy provider and ask them whether you're
on a market contract and making sure that you are
so that you can get the best or the sharpest reet.
Tip number two check your next statement or your current
statement because it should show it there. Now, what other

(04:38):
tips can you share with us on saving on your
energy bill?

Speaker 3 (04:43):
So tip number three would would be to go to
Energy made Easy. That's for a gain for New South Wales, Queensland,
South Australia, Tasmania. That's the Australian Energy Regulator's website where
you can look at all the market contracts. Now you've
got to be a big tech savvy to actually manipulate
and go through that site. So perhaps you might want

(05:04):
to help mum and dad, grandparents as well to make
sure they're on the best rate as well, and there's
a similar independent site on for the Essential Services Commission
in Victoria, so you can go to the other sites.
You know, the people that say we can switch you,
we can help you, but they're not showing you every offer.
They're not getting perhaps the best deal for you.

Speaker 2 (05:27):
All right, So energy made easy. Apparently there's a new
rule now that the energy bill provider needs to tell
you every one hundred days whether you are in the
best rate or the best package. Walk us through that
because that seems to be confusing for some people. How
do we avail of the real low rate?

Speaker 3 (05:50):
So that's what happens with on your energy bill, so
your electricity bill or your gas bill. So the Australian
Energy Regulator brought out a better billing guideline a couple
of years go, and that requires energy companies energy retailers
to actually put on the front page how you can
save money. So I mentioned that a little bit earlier.
So just get your energy bill, open it up. Sometimes

(06:13):
it's daunting because you're going to look at how much
you need to pay, but actually look at the fact
that you might be able to save money. The other thing,
or in another tip would be that every energy retailer
has an affordability program. And if you tell them that
you can't afford the bill that's in front of you,
and that's because the price of electricity. It's not about

(06:35):
the person who can't pay it, it's about the actual price.
Then ring your energy retailer and ask them about affordable
payment plans and other affordable options that your energy retailer
must provide you with if you can't pay that current bill.

Speaker 2 (06:51):
And I imagine a lot of people would take that option,
especially if there are mortgage repayments have practically eaten up
half of their salaries. That's really great affordability program. Check
that out. It's all again under your statement or your
communications with your energy bill provider. Janine, thanks for your time,
thank you, and there's one other tip. We do have

(07:13):
a free call number. It's one eight hundred.

Speaker 3 (07:16):
Two four six five four five, and if you can't
find the free call number for the Energy on bondsman
in your state, we'll help you get that number so
that you can get the assistance that you need.

Speaker 2 (07:27):
Janine, thanks for your time, thank you, thank you for
listening to this bonus episode. Until next I'm Michelle Baltasar
Bye for now.

Speaker 1 (07:36):
Thanks for listening to the Friends with Money podcast. For credible,
independent and easy to understand financial commentary, visit moneymag dot
com dot au. Please remember that the views and opinions
expressed in this podcast are general in nature and further
independent advice and research based on your personal circumstances should

(07:56):
be sought before making an investment decision and