In today’s blog, we explore what a standing offer is, and what it could mean for you.
A recent article by the ABC brought attention to the estimated one million Australians who are stuck on a ‘Standing Offer’ with their energy provider, as found in a recent report co-authored by an Energy Policy expert for the charity, St Vincent de Paul.
A standing offer is the default plan that is published by the supplier as required under State Government legislation. Providers also have ‘Market Offers’ that are discounted from the ‘Standing offer’ or at a lower price than the standing offer. Typically standing offers are 30-40% higher than the best market offer from a supplier.
Customers can end up on standing offers in various ways: usually the customer has not made a specific choice (e.g. when you move in to a property); or perhaps your deal has expired; or perhaps you’ve just always had a Standing Offer. The longer that you have been with your provider the more likely that you will be on a standing offer. If you’ve recently moved in to a new property and not checked, the chances are that you will be on a standing offer.
You get lulled into a false sense of security. Everything sounds ok on the surface. They would have sent you a communication of some sort at the time (which if you’re like me, you probably would have ignored), to say they were going to do it and that you didn’t need to do anything. Easy peasy.
The catch with this arrangement is, that while it is the easy option, the standing offer is not a cheap option by any stretch and you will find your bills start to increase straight away. There are no discounts, no cheap rates anywhere to be found in standing offers. In fact, the ABC article mentions savings of around $500-$1000, just by renegotiating with your supplier.
An even better option though, is to shop around. There are big differences between the suppliers and there is a fair chance you’re not with the cheapest you could be. As noted by St Vincent de Paul, the cheapest providers may not be household names. It can be a bit painful to do the searching yourself, but it will save you a lot of money every month.
There is an easier way, and that is to let us do the searching for you. When you join Energy Umpire, we do the hard work for you, while you still get the savings you deserve. When the bills come in, we will search through the full range of suppliers and their plans (not some, ALL), and recommend to you the cheapest option.
Hard work done, savings made, problem solved!