How to get your energy bills ready for winter
Winter officially starts on Sunday, June 1, and two very different reports have landed ahead of the chilly season.
The Bureau of Meteorology is forecasting warmer-than-average days and nights across much of Australia. Rainfall is also likely to be above average in many mainland areas, though there's no clear trend for the south-western and eastern coastal regions.
But don't let the mild outlook fool you: energy bills are still expected to rise, according to the Australian Energy Regulator. How much they'll go up depends on where you live.
The good news is there are still plenty of ways to reduce your energy use and cut your winter energy bill, says Liz Stephens, general manager of public affairs and strategy at Energy Consumers Australia.
How much will my power bill be?
On May 26, the Australian Energy Regulator (AER) released new electricity prices under the Default Market Offer (DMO).
Despite its national-sounding name, the AER only sets prices for New South Wales, South Australia, and Southeast Queensland. Other states have their own energy regulators.
From July 1, households on default (or standing) electricity plans in these areas will see the following price increases:
- SE Queensland: up 0.5% to 3.7%
- South Australia: up 2.3% to 3.2%
- New South Wales: up 8.3% to 9.7%
The AER says these hikes are due to ongoing pressure across the electricity supply chain.
"We know this is not welcome news for consumers in the current cost-of-living environment," said AER chair Clare Savage.
The DMO is a benchmark price, essentially a safety net for customers who don't shop around or switch plans. But most people can find better deals.
As Savage points out, 90-95% of market offers are currently below the DMO, with the cheapest plans 18-27% cheaper.
I strongly encourage all consumers not to stick with old or uncompetitive plans," Savage says. "Contact your retailer or compare offers to see if you can save."
To know the prices in other states, territories and regions, the ABC has a useful breakdown here.
Four quick ways to cut your winter bill
Last winter, a Finder survey found nearly half of Australians went without heating to avoid high bills. Around 13% went without altogether.
Stephen says it shouldn't have to be that way, and there are simple, low-cost actions that can help keep your home warm while using less energy.
Here are four that can make a big difference:
- Block the drafts: Use door snakes or rolled-up towels under doors.
- Work with the sun: Open curtains during the day to let the sunlight in, then close them at night to trap heat.
- DIY window insulation: Stick bubble wrap to windows to help retain warmth.
- Zone your heating: Only heat the rooms you're using, and close internal doors to keep the heat in.
"The key thing is to stop warm air escaping outside, or cold air getting in so you want to seal up any gaps around the doors, windows, walls, and floors," says Stephens. "There's no need to do anything fancy here - unless you want to."
If you do have the time and budget, there a number of home renovations that can increase energy efficiency around the house. Green loans can also help fund this.
Get smart with appliances
Heating and cooling account for around 40% of your home's energy use, according to Energy Consumers Australia, so small changes here can lead to big savings.
Stephen says using the reverse function on your air conditioner if you have one as it's often cheaper and more efficient than other heaters.
"If you're younger and you don't have health issues, try setting the temperature on your heater to 18-20 degrees in winter." She says. "Adjusting your heating or cooling by one degree can decrease your energy use by 5-10%, saving you money."
Stephens also recommends replacing old appliances with newer, more energy-efficient models when it's time. Look for the highest star rating you can afford. An online energy rating calculator can help you compare it to other appliances.
Lastly, use cold water for laundry whenever possible, and always run full loads.
"Regardless of the season, around 20% of a typical household's energy use goes on heating water. By doing fewer loads you'll save power and money."
Tech tools that can help
Technology can help you spot where energy is being wasted and take control of your usage. If you have a smart meter, check whether your electricity retailer offers an online usage portal.
"This can help you do the detective work to find out what is using energy in your home," says Stephens.
Energy Consumers Australia is currently pushing for real-time access to smart meter data to help more consumers make informed decisions.
"This would allow people - especially those renting or living in apartments - to take control of their energy use and costs. We have made an application to change the energy rules to hopefully enable this to happen."
Victorians may be eligible for Powerpal, a free energy monitor that connects to your smart meter and shows live data via an app.
"Your local council may have helpful energy monitoring devices that you can borrow from libraries or other community centres, such as thermal cameras that can help you tell where you are losing heat from your house," Stephens says.
You can also buy home energy power monitors online. "Check which one best suit your budget and lifestyle circumstances."
Why homes make it harder to stay warm
Unfortunately, many Australian homes aren't built to keep heat in, with many according to Stephens, having the "energy efficiency of a tent".
Energy Consumers Australia research found:
- One in three homes lack ceiling insulation
- Only half have proper draft-proofing
- Just 19% have triple-glazed windows
- And only 15% have floor insulation
"Unfortunately, what we often see is that the homes with the poorest levels of energy efficiency in Australia are also where those of us with the lowest incomes live - or rental properties where the people who live there don't have the agency to make big changes."
Stephens argues that energy performance should be more transparent when renting or buying a home, and that governments should step in.
"Energy efficiency is one of the most cost-effective ways to cut energy bills, reduce emissions and improve health and wellbeing, but the energy performance of housing is largely invisible to consumers," she says.
"Consumers just aren't getting crucial information about the ongoing energy costs of the properties they want to buy or rent. There should be mandatory disclosure of energy ratings at the point of sale or lease, and national minimum standards for rentals," she says.
Where to get more help
There's no need to tackle winter energy savings alone. These resources offer great advice:
Energy.gov.au - Government site with advice on heating, appliances, and more
YourHome.gov.au - In-depth info on sustainable home design and upgrades
Energy Consumers Australia - Practical winter energy tips, guides, and research
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