Last year, the Joulius team conducted a survey with 750 Victorians to discover what they thought about the electricity industry and switching plans.
How many of us bother to regularly review our plans? How many of us really care about environmentally-friendly energy? What are people looking for from their retailers? Read below to learn the highlights.
Victorians are a conscientious bunch!
- 1 in 5 people have solar in their home
More and more Victorians are discovering the benefit of using solar power in their homes. Although panels can be a hefty upfront investment, around 20% of Victorians have chosen to take the plunge into personal renewable energy, enjoying smaller bills and the satisfaction of reducing their carbon footprint. The data says this trend is growing: a further 20% say they’re considering getting solar panels within 2 years.
Money is the number 1 motivator
- 75% of people consider the savings they’ll make when switching plans
We all love to save money, so it’s not surprising this is the top priority when hunting for a new energy plan. It’s not the only thing on the radar though. Almost half Victorians surveyed saying they’re also on the lookout for retailers that align with their values, such as being environmentally-friendly or Australian owned.
Many Victorians distrust their energy retailer
- 40% of Victorians don’t think their retailer has them on their best offer
- 1 in 3 Victorians don’t trust the retail energy industry in general
It turns out a sizeable number (40%) of Victorians aren’t confident they’re on the best plan. So, what’s stopping them from finding it? We think we have a pretty good idea…
Finding a better deal is time-consuming!
- Victorians spend 2.5 hours on average searching for a better deal
- Only half of Victorians have switched in the last 5 years.
When it takes on average 2.5 hours to find a better deal, it’s no wonder that only half of Victorian households find the time to regularly review their plan. Between flicking through different comparison sites, calling retailers and sifting through pages of fine print, it literally takes hours to get anywhere! (Although we’ve got a great guide on what you should be looking for here).
It may save time, but the price for not reviewing the market doesn’t come cheap. Retailers can start changing the terms of your energy plan 12 months after you sign the contract, meaning they could be hiking the price without you noticing. If you haven’t checked the market in a while, the chances are you’re paying more than someone who has. This phenomenon, known as the ‘loyalty tax’, may be partly responsible for why so many Victorians (1 in 3) distrust the energy industry in general.
So, who’s addressing the problem?
In the past 3 years, the Regulators responsible for managing the energy in Australia and specifically in Victoria, have ‘stepped in’ to simplify the comparison and switching process between retailers. Their aim is to encourage more consumers to take an active approach to managing their energy expenses. But the market still has a long way to go.
At Joulius, we’re doing our part to help Victorians find better priced energy plan deals by reducing the time it takes get a reliable review of the market. Using Joulius can save Victorians both money and time searching for a new plan. (Learn more here.)
SOURCE: Research Report for Joulius Pty Ltd – Retail Electricity Market Profiling Insights, June 2020, Perspicacious Research.
