Australians reluctant to switch energy suppliers

Peter Terlato 7 February 2017 NEWS

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85% of Tasmanian households have never switched.

A new survey has found a substantial proportion of Australian households and small businesses have never switched energy providers or plans, particularly those in Tasmania and the ACT.

Energy Consumers Australia's Consumer Sentiment Survey - December 2016 reveals that while a majority of households in Victoria (60%), New South Wales (57%) and South Australia (55%) have considered switching providers or plans in the last three years, only a small proportion have actually made a change.

In the last three years just 27% of Victorians, 21% of NSW and 16% of South Australians have switched.

In other states and territories the proportions are even lower (see below).

The overwhelming majority (85%) of Tasmanian households have never switched energy providers or plans, while almost three quarters (71%) of those in the ACT have never changed.

This is largely due to a lack of competition and limited number of retailers, according to the report.

Consumers who are actively engaging in the energy market and switching providers are not necessarily reporting higher levels of satisfaction with value for money than those who aren't switching.

Households report relatively high levels of satisfaction with their current energy services. The proportion rating their provider 7 out of 10 or higher ranged from 58% in Tasmania to 70% in the ACT.

Among Australian small businesses, almost two-thirds (61%) considered switching in the last three years, while one-fifth (22%) actually changed energy providers or plans. The majority (65%) of small businesses were positively satisfied with their energy services.

New research highlights the growing concerns of Aussie businesses with regards to rising energy prices.

Most Aussies have both electricity and gas for energy but are often lackadaisical deciding on suppliers. In many states, the energy market is highly competitive, and shopping around can save you lots of money.

Use our comprehensive guide to compare different offers from a variety of energy suppliers.

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