Set, forget, regret: Utility provider loyalty is costing Australians $7.5 billion

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Complacency is hurting the hip pocket of almost all Australian utility users, according to new research by Finder.

Finder crunched the numbers on energy, mobile, and broadband costs and found that Australians paid a collective $7.5 billion in loyalty tax in 2024.

That's $616 per household.

Mariam Gabaji, utilities expert at Finder, said too many people were missing out on a better deal.

"With the cost of living continuing to climb, Aussies are shelling out more for everyday necessities including electricity, mobile, and broadband.

"These services are essential, but that doesn't mean you should settle for uncompetitive prices.

"Existing customers often pay more, while businesses offer cheaper introductory deals to new customers."

Finder's analysis shows Aussies are on average paying over $4 billion in loyalty tax for energy, over $2.4 billion for mobile data, and over $1.2 billion for NBN.

Over 80% of Australian households in the National Electricity Network (NEM) (NSW, VIC, SA, and South East QLD) could switch to a cheaper electricity plan if they shopped around or contacted their electricity provider, according to a report from the ACCC.

Gabaji said regularly comparing providers and shopping around should be second nature, not just when you first get a product.

"If you've been with the same provider for the last 12 months – be it electricity, broadband, or mobile – you're probably paying too much.

"Kick off the new year by taking charge of your finances. It's better to keep your hard-earned money in your account than handing over more than needed to your utility provider.

"A little effort to compare the best deals will lead to huge savings," Gabaji said.

Click here for more information on Finder's utility bill statistics.

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