Home Heating and High Electricity Prices Make for a Chilly Winter for Australians

There is a big chill in store for Australians as cost of heating soars

Last updated on July 20th, 2022 at 09:22 am by Adrian Edlington

With Australians feeling the chill this winter, Savvy looks at what people are doing to save on home heating expenses and deal with soaring electricity prices.

  • 70% of women say they will simply “wear more clothes” to avoid energy use
  • 42% of total respondents will use appliances less
  • 46% will “turn off lights when not in the room”
  • 43% have considered changing energy providers due to value for money concerns
Young woman sitting in front of heater, keeping warm in winter

A representative survey of Australians about their energy use amid rising inflation paints a picture of a chilly winter for most as they desperately try to rein in spending on heating bills.

The survey of 1,003 people, across all demographics and locations in Australia and weighted for population, showed that 67% or two thirds of Australians would plan to “wear more clothes” to save on energy use this winter, when asked to identify their top three responses. Broken down by the two main genders, 70% of women identified this as a top response, compared to 64% of men.   

As for other strategies 42% of the total said they would use their appliances more sparingly, and 46% would turn off lights when not in the room.

Opinion graph: If you are considering changing energy providers, what are the top three reasons for doing so?

ENERGY CRISIS

Huge energy bills were always on the cards as wholesale electricity prices skyrocketed by 141% this year – which retailers have had to pass on to consumers.

Adding to energy woes, The National Electricity Market was suspended by the Australian Energy Market Operator last month to ensure consistent electricity supply.

According to the survey, when asked their top three responses, 43% say that they are considering changing energy retailers as they are unhappy with the value for money, and 32% saying they’ve found more competitive rates elsewhere.

Opinion graph: If you are considering changing energy providers, what are the top three reasons for doing so?

Savvy CEO Bill Tsouvalas says that loyalty to a certain retailer will cost consumers.

Bill Tsouvalas, Savvy Managing Director & personal finance expert;

“If you haven’t changed your energy retailers over the last twelve months, look for cheaper alternatives and lock in prices as much as you can. Keep looking for better deals. Even if you’ve changed provider recently, it doesn’t mean you can’t change again.”

“Consumers hold the ultimate power even in times of inflation and rising prices – so be prepared to vote with your feet... or your wallet!”

Tsouvalas also says that everyday Australians may struggle to heat their homes efficiently due to insulation standards,

“It’s unfortunate that we may be paying even more due to lax insulation standards that lag behind other countries,” he says. "An option for some may be to consider a personal loan to upgrade their home's insulation and reduce the amount of wasted heat."

If you are experiencing acute mental stress due to finances, contact Beyond Blue on 1300 22 4636 or Lifeline on 131 114.

For more information, contact Adrian Edlington – [email protected]

Sources:

Savvy – 2022 Cost of Living Survey – 2 (n = 1003) 

https://www.news.com.au/finance/money/costs/industry-experts-say-australia-is-on-the-precipice-of-energy-crisis/news-story/4b5e9a0197c37beec265b6aea56fe936

About Savvy

Savvy is one of Australia’s largest online financial brokers, focusing on personal and commercial financial products. Founded in 2010, the firm has seen rapid growth, a testament to their provision of market leading rates and reaching customers with the latest in media and technology. Savvy is a proud supporter of Kids Under Cover, a charity assisting homeless and at-risk youth to strengthen their bonds to community and education. Savvy was named one of BRW’s fastest growing companies in 2015.