Why a ‘zero discount’ energy bill could be your cheapest option | The Sydney Morning Herald

Bill shock has become a common occurrence in the past two years as high electricity prices have slapped consumers with expensive power bills.

Electricity retailers reacted by offering larger and larger discounts to drive prices down in order to attract customers away from other retailers. But, as the Australian Competition and Consumer Commission pointed out in its retail electricity pricing report, the widespread discounting can be problematic and confusing.

Some retailers are now heading in the opposite direction, cutting back the jargon and dropping discounts.

Nothing the new normal

In Victoria, several energy companies have launched zero per cent offers that work out to be cheaper than their “discounted” deals and are aimed at removing some of this bill confusion.

Part of this “discounting” removal is about increasing transparency as there is often confusion in the market as to what is actually being discounted; whether it is energy usage or the kilowatt per hour tariffs, leading to many instances in which consumers lured in with “higher” discounts may actually be hit with higher base costs due to the discount not being right for them.

Momentum Energy set the trend for this “lack of a deal” deal, stating it was a plan for where consumers can see exactly what they will pay.

“We felt transparency on the actual price of electricity has been limited, so this is the first step towards fairer pricing,” Momentum Energy managing director Paul Geason said.

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Why a ‘zero discount’ energy bill could be your cheapest option.