Power price hikes keep customers searching

Prashant Mehra
(Australian Associated Press)

Nearly 1.4 million Australians, or about one in 10 adults in the country, are keen to switch electricity retailers over the next two months, according to new research by global measurement firm Nielsen.

Potential energy switchers are 17 per cent more likely to live in metro areas, have a higher household income than the national average and are more likely to have young families, Nielsen’s research shows.

The survey, which covered 18,581 people, found that nearly three in 10 looking to change had already changed electricity providers in the past 12 months.

Nielsen’s head of marketing effectiveness John Price said energy costs are the big driver of consumer restlessness.

“The rising cost of energy continues to put pressure on household budgets, highlighting the need for energy retailers to better understand how to reach and engage with individual consumers,” Mr Price said.

Finding a long-term solution for energy efficiency is high on the agenda for consumers looking to switch providers: about 298,000 already have solar panels or solar hot water system installed and another 130,000 plan to have at least one of these installed within the next year.

Mr Price said retailers needed to work hard to keep existing customers or lure away the clients of competitors.

“Reaching electricity switchers with a tailored message that speaks to their concerns is mission critical for energy retailers,” he said.

Earlier this month, a new report by the Grattan Institute revealed that competition in the electricity market has failed consumers, with power bills almost doubling over the past decade.


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