A new rule has been finalised today that will help consumers understand how much they could save by switching to a cheaper electricity plan, without even opening up their electricity bills.
Set to come into effect on 30 December 2026, the Australian Energy Market Commission’s (AEMC) new rule is on the back of a number of other changes to energy rules that were finalised in June, all with the goal to make it easier for consumers to switch energy plans.
Providers are to display switch and save message separate to electricity bill
Under the new rule, providers must include a ‘better offer’ message – alerting customers if a cheaper plan is available that they could switch to – on electricity bill communications, not just on the bill itself.
This means, for example, that customers who receive bills via email will have a message suggesting potential savings on a cheaper plan, within the body of the email, not the attached bill.
This is a change to the previous rule, which only required the message to be placed within the electricity bill. The amendment, however, has been made with the intention to increase consumer switching, after research quoted by the AEMC found that up to 40% of customers don’t always open their bills.
Increased visibility of potential savings to help decrease complications
Giving consumers greater visibility of potential savings from switching upfront – without even opening their electricity bill – could encourage more people to change providers in search of savings and ultimately put more money back in household budgets.
For example, research from Canstar Blue shows households in Sydney switching from the average priced electricity plan, to the lowest price electricity plan today, could save more than $400 in a year.
This type of messaging, readily available and seen by consumers, will hopefully encourage action, and increase competition in the market.
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| Potential savings switching from average annual cost electricity plan to lowest | |||
|---|---|---|---|
| Average annual cost | Lowest annual cost | Potential savings | |
| Sydney | $1,816 | $1,390 | $426 |
| Melbourne | $1,462 | $1,199 | $263 |
| Brisbane | $2,040 | $1,681 | $359 |
| Adelaide | $2,189 | $1,817 | $372 |
| Canberra | $2,375 | $1,992 | $383 |
| Hobart | $1,326 | $1,216 | $110 |
Source: Canstar Blue – 11/09/2025. Based on single rate electricity plans on Canstar’s database; excluding solar-only plans. One product shown per distribution network. Annual costs calculated based on the estimated lowest possible price a representative customer would be charged in a year, assuming all conditions of discount offered (if any) have been met. Representative customer based on the reference usage for NSW, VIC, QLD, ACT, and SA (per Victorian default offer for VIC, ICRC for ACT, and AER for others) or the median usage in the Office of the Tasmania Regulator’s report, Typical Electricity Customers in Tasmania 2022 for TAS
Electricity bills a mystery for many
Today’s rule change follows a series of amendments made by the AEMC in June this year, all with the intention to increase consumer understanding and confidence in the energy market.
The changes will be welcome for many Australian consumers, particularly after a Canstar Blue survey of 2,833 Australians found that just one in three energy customers fully understood their electricity bill.
In a separate survey of 4,951 electricity customers, the research revealed that 22% of customers who have been with a provider for more than two years have not switched plans because they find the process of comparing and switching electricity plans too complicated.
Canstar Blue utilities editor, Tara Donnelly, says, “This new energy rule is a step in the right direction for helping Australians better understand their electricity bills and, importantly, know how much they could be saving.”
“Canstar Blue research has identified just how confusing electricity bills are for electricity customers, with two-thirds struggling to understand what their bill is trying to say.
“Putting a message that doesn’t just call out savings, but encourages customers to compare their options, will hopefully help them realise that there could be hundreds of dollars to be put back in the budget with a simple switch.
“While utility bills will often fall victim to the ‘set and forget’ trap of household finances, they can be the switches that could add some real relief to a budget.
“It will be some time yet before we see the material changes to these rules, but that doesn’t mean energy customers should wait for the green light to come from the regulator, or the offer from their provider.
“With just one last cash injection from the federal energy rebate left, the reality of our real electricity bills will be hitting in just a few months. Save any risk of bill shock – compare, switch and potentially save hundreds, now.”
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