Did you know that only 52% of people in Victoria have changed energy providers in the last 5 years?
So how about the other 48% of Victorian energy account holders? Why don’t they switch? Could it be that relative to other industries, lower levels of trust, knowledge and interest contribute to what’s known as the loyalty tax? Or could it be that it’s just so darned complicated to work out whether you are actually getting a good deal or not? Are you really comparing apples with apples?
This tax has nothing to do with the ATO
It may surprise you to learn that loyalty tax is nothing to do with the ATO! It’s much more to do with a combination of lack of engagement or knowledge on the part of customers. Combine this with a practice by many energy retailers to not communicate new offers to ‘loyal’ customers. Some retailers refer to this as ‘don’t poke the bear’, meaning they have a strategy to leave loyal customers well alone, and not communicate new offers to them in case those customers are prompted to start checking around for better deals elsewhere!
In other words, the longer you remain loyal to your electricity retailer, the less likely you are to be offered more competitive deals, which are often used to acquire new customers, rather than reward existing ones.
Basically, if you don’t check your bill and check the market regularly, you could be paying much more than you need to for your electricity.
So what can you do about it? Well, if you are reading this the chances are that you are already doing something about it!
It doesn’t have to be hard to compare your plan against the market
Finding a competitive rate for your electricity shouldn’t be hard. That’s why we designed Joulius, a free bill analysis and savings service that compares your bill to all other retailers in your area. If we find you savings, we’ll tell you how to switch. And we’ll send you alerts if better offers become available. So you don’t have to worry about overpaying for electricity again. Read more about Joulius here.
