There’s no hiding it: inflation is running rampant. Prices are rising everywhere from supermarket shelves to the petrol bowser. But the one that seems to have most people spooked is the prospect of out-of-control power bills.
Federal Treasury is forecasting electricity bills are likely to rise by 20 per cent on average by year end and then a further 30 per cent in the 2023-24 financial year.
What can you do now to prevent a surge in your power bills later?
Go solar
If you’ve toyed with going solar the possibility of skyrocketing power bills could be the motivation you need to get it done. The Clean Energy Council reports it can cost from $2800 for a 2kW solar system to more than $14,000 for a 10kW system. While it won’t be an instant fix, it might provide the long-term reduction in power bills you need.
Contact your energy retailer
If it’s been a while since you reviewed your plan, make that call to your energy retailer.
- Check what kind of contract you’re on and when it expires.
- Find out if your prices are going up and if so, when and by how much.
- Ask if they have a better deal for you; and
- Find out if you’re eligible for any concessions or rebates on your energy costs.
Look around at other retailers
The best deal for you may be with another energy retailer. Try uploading your most recent bill on a comparison website to see if a switch could help reduce your energy costs.
Reduce your use
Cooling accounts for 20-50 per cent of household power usage on average. So as temperatures rise, one of the best ways to reduce your bill is by curbing your use of air-conditioning. Start by closing windows, doors, curtains, and blinds during the day to keep the house shaded and cool and open windows at night to allow cooler air to circulate. Use fans first and make air-con a last resort. If you must use air-con set it at 26 degrees and clean the filter. A clogged filter in your air-conditioner can force it to use 15 per cent more energy to operate.
If embracing the festive season means decking the halls with lights and lots of them, think LED. A fibre optic tree can help keep a cap on power bills and if dining outside or setting up lights around a pool – go solar if possible.
Your fridge is just one of the power-hungry appliances in the kitchen. To ensure it is operating as efficiently as possible make sure there is plenty of space around it, check the seals are keeping it firmly shut, don’t overfill it, and vacuum the fridge coils to keep it running at optimum efficiency.
Get into the habit of switching off appliances at the wall and if you know your family leaves lights burning when they could be off – install dimmers, timers, or sensors.
Finally, if you’re not on a flat energy plan avoid using appliances at peak use time. Set smart appliances to run overnight if possible.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.