Power price hikes

The pinch that is power bills is about to become a punch! With battlers across the country struggling to pay their bills, all the signs are it's not going to get any easier with electricity retailers planning to power ahead, increasing rates by more than 10%.

And come July 1, you add the cost of a carbon tax to that amount too.

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According to Ben Freund from Independent Price comparison website Goswitch: “Australia does not have a policy to make electricity cheaper."

Victorian power consumers will be hit with the price hike on January 1, other states can wait but Freund says, they're going to get hit twice as hard.

But are we getting any extra bang for bucks?

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Not according to Janine Rayner from the Consumer Action Law Centre: “We're also seeing an increase in the number of complaints to retailers who aren't delivering a level of customer service or support to their customers that would be expected a a time when prices are rising so significantly"

So while we are being forced to pay more, the big retailers are caring less. Despite the poor service, an estimated 75% of us remain on a power companies default rate and that means paying more than we have to for power.

“The first thing you have got to do is switch plans and switch to the cheapest plan possible and understand a kilowatt hour is a kilowatt hour it doesn't matter who you buy it from it all comes off the same grid. A famous brand or an unknown brand will sell you the same kilowatt hour," says Freund.

Anyone after a little research by calling the power retailers can secure a better deal but with power plans now as complicated as mobile phone bills, the Goswitch website does the hard work for you.

Victoria was the first energy sector to privatise and deregulate meaning it's an open market.

Creating a competitive environment was meant to drive prices down. So far according to a report from the Victorian regulator it hasn't happened.

“We're concerned with the current level of market concentration in Victoria in particular; there have been a number of the big retailers that have acquired additional or smaller retailers, which are making their market share significant.”

That in turn gives them greater control when it comes to price but you can beat them by exercising your right to switch.

Comparing retailers around the country we have been able to identify the Power providers offering the best deals in each state.

In New South Wales Tru Energy was offering the cheapest power package, followed by Dodo and AGL.

In Victoria Dodo is currently cheapest followed by Our Neighbourhood and Red energy.

Queenslanders should be looking for deals from TRU energy, Click energy and AGL if they want to reduce their bills.

While in South Australia, the most expensive state for power in the country, TRU energy and Red Energy are the most competitive.

Freund says: “Switch now, save money now but make a note to go to go switch every year to verify you are still on the cheapest plan.

"Consumers need to be aware that prices are going up next year and there are a number of opportunities that they have to reduce the impact of that and that would be to switch to another provider, looking around for a better deal that suits them but also to reduce consumption where they can, the power companies always take care of themselves you need to taking care of yourself"