The state of retail competition
The Australian Energy Regulator publishes a quarterly Retail Performance Report that provides an interesting snapshot of the state of competition in the Australian retail energy market. Here's a summary of the latest updates:
Tier 2 retailer competition
The Australian retail market is dominated by the 'Big Three' retailers AGL, Origin and Energy Australia which acquired their retail customer bases at the time of deregulation. Since the introduction of competition, tier two retailers have steadily won market share away from the Big Three, generally though offering more competitive pricing.
This trend has continued in the more recent update, with market share of tier 2 retailers growing 2% to now represent about 18% of the residential retail market.
Many retailers offer discounts that are conditional. Usually, a customer must pay on-time in order to achieve the discount. This quarter, over 365,000 customers missed out on their conditional discount due to late payment of bills, which means that they paid more than they needed to.
If you know that you tend to pay your bills late, it makes sense to choose a plan where late payment is not penalised.
How Bill Hero helps
Bill Hero keeps careful watch over all the publicly available plans available from all retailers, and monitors your electricity bills and payment behaviour. We'll switch you to the plan that delivers the best outcomes for your own situation. That includes making sure you're on a plan that wont penalise you if you do pay late.
You've already got enough on your to-do list. Subscribe to Bill Hero for peace of mind on your electricity bill. Bill Hero is at your service.
The full Quarterly Retail Performance Report Q1 2019-20 is available on the AER website.