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Every year Australians buy about 940,000 gas and 800,000 resistive electrical appliances (e.g. coil stovetops or space heaters). A very good portion of these are ill-advised choices because the appliance is deeply inefficient, or the fuel source is more expensive – and likely to be increasingly so. Either way, consumer bills end up being higher than they needed to be.
A significant way for many Australians to reduce their bills is through electrification. Our own research, commissioned from CSIRO, indicates that by 2030 the average difference in total energy costs, including transport, between a typical fossil-fuelled home and an all-electric home will be around $2,250 per year. Households that install solar and a battery will make additional savings.
We think it’s critically important that governments help Australian energy consumers make the most economically sensible decisions they can. We get all kinds of advice to make more minor decisions (think thread counts in sheets, or the best before date for bottled water). But for many major investments in energy appliances, refits, vehicles, etc – well, let’s just say the information is patchy at best.
Which is why I am so excited to see real efforts to fill this gap emerging.
If you live in the ACT or Victoria, there are tools that can really help you. Last year, the ACT Government paired up with Choice to develop a tool to help Canberrans choose efficient electrical appliances and upgrades for their homes. Simple to use but highly effective, this is a version of a ‘one stop shop’ for consumers that we’ve been calling for.
This week, the SEC, on behalf of the Victorian Government, rolled out its own tool. Helping consumers develop an electric home plan, and thus save money through reliable, simple advice is of enormous practical value.
This model is also piloting functionality for residents in the cities of Casey, Merri-bek and Ballarat to be connected directly to SEC-endorsed installers. Wonderful, timely support.
We are delighted to see initiatives such as this start to fill a real gap in consumer information and advice – and we call on all other governments to come to the party.
I’d love to see competition between states and territories to provide the most useful and effective ‘one stop shop’ for consumers.
I’ll happily hand out an annual prize, if that would help…?
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Brendan French
Chief Executive Officer
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