Why is my electric bill so high?

If your electricity bill is higher than expected, you're not alone. With rising energy prices across Australia, many households are feeling the strain. It’s easy to use more energy than you realise, leading to a bigger bill.

But don’t worry; there are simple ways to reduce your costs. In this article, we’ll look closely at the factors that impact your energy usage and provide practical tips to help you save money on your next bill.

Reasons for a higher electricity bill

Outdated appliances

Older appliances are often less energy-efficient, consuming more power than newer models. If your appliances don't have an energy star rating, it's worth considering upgrading to more energy-efficient options. This can help reduce your energy consumption and lower your bill in the long run.

Energy-draining appliances

Certain appliances are particularly energy intensive. Ovens, clothes dryers, and space heaters, for example, tend to consume a large amount of electricity. If you've been using these appliances frequently, consider whether there are more energy-efficient alternatives you could switch to, or if you could reduce their usage.

Your energy tariff has expired

Energy tariffs usually come with a benefit period, which determines how long the tariff deal remains in effect. If your tariff has expired, your energy provider will likely move you to the default market offer, which is typically the highest price available. Check with us to explore new tariff options that could help you save.

The weather

While it may not be the first thing you think of, extreme weather conditions can have a significant impact on your energy bill. Heatwaves in summer and cold fronts in winter can lead to increased energy usage as you rely more on heating or cooling to stay comfortable. Make sure you are aware of how the weather is affecting your energy consumption.

You’re spending more time at home

Spending more time at home is another common reason for a higher energy bill. During the pandemic, for instance, many people saw their bills rise as they worked from home. If you have recently been at home more than usual, it's likely contributing to your increased energy use.

Seasonal changes

As the seasons change, so do your energy needs. In winter, shorter days and colder temperatures may lead to greater reliance on heating and lighting. Adjusting your thermostat, using energy-efficient lighting, and lowering the temperature on your water heater can help manage your energy consumption and keep costs down.

Your bills are estimated

If you don't have a smart meter, your energy provider may estimate your usage based on previous consumption or profiles of similar homes. This can sometimes lead to inflated bills. Look out for any bills marked with an "E" for "estimate." Submitting regular meter readings ensures your provider has accurate information, and any discrepancies can be corrected.

Keeping vampire devices plugged in

Even when appliances are turned off, they can still draw power from your electricity supply. These "vampire devices" can quietly increase your energy consumption. Unplugging devices when they're not in use, such as phone chargers, televisions, or kitchen appliances, can help reduce unnecessary energy drain.

The energy provider missed your discounts

It's possible that the discounts you were receiving as part of your energy plan have expired. If you're not on a fixed-term contract, you could easily switch to another provider offering better tariffs and discounts that suit your household and payment habits.

Alternatively, it's worth checking if you missed out on a discount this time due to not meeting the payment requirements, such as paying your bill late.

More people using your electricity

If you've had guests staying or more people in your home than usual, it will naturally increase your energy consumption. More people mean more use of lights, showers, washing machines, hairdryers, and other household appliances, all of which add to your bill.

You’re renovating

Renovations and home updates can also lead to a rise in energy costs. If you've recently had construction work done, tools may have been plugged into your electricity supply. New rooms, extensions, or poorly insulated areas can also increase heating and cooling demands, contributing to a higher bill.

Your meter has been replaced

If your meter has recently been replaced, it may explain any changes in your energy usage readings. It's possible that your old meter was faulty and wasn't recording your consumption accurately, which could result in discrepancies on your bill.

Your energy provider has issued a back bill

If your energy provider has issued a back bill, your current bill may be higher than expected. This happens when you're asked to pay for both your current usage and any outstanding charges from previous periods.

Back billing can occur if you were undercharged in the past, there was a delay in issuing your bill, or if you didn't fully pay a previous bill. Keep in mind that there are time limits for how long your energy provider can back-bill you, which can vary depending on your location—some areas allow up to 9 months.

Your billing period has changed

Energy bills often vary based on the number of days in the billing period. If you've noticed a higher bill, it could simply be that the current billing period is longer than the last. To check, compare the billing dates on your previous and current energy statements.

Top ways to save money on your electricity bill

Reducing electricity consumption in your home is one of the most effective ways to lower your energy bills. Simple changes and mindful habits can lead to significant savings over time.

Switch electricity plans with Compare Energy

Looking to save on your electricity bill? Start by checking whether you're on the best energy plan for your home. Call Compare Energy on 1300 790 106 to find out if there’s a better deal available for you and make the switch today.

There are many small changes you can make in your home that, when combined, will help reduce your electricity bills. These energy-saving tips may seem minor on their own, but over time, they can lead to significant savings.

Below are a variety of practical steps, ranging from simple fixes to more substantial long-term investments, that can help you save energy and reduce your electricity costs.

Switch to energy-efficient light bulbs

Although energy-efficient bulbs such as LED or CFL bulbs can be more expensive initially, they can save you a substantial amount in the long run. These bulbs use up to 75% less energy than traditional halogen or incandescent bulbs, making them a smart choice for lowering your electricity consumption.

While the upfront cost may be higher, the savings on your electricity bill over time will easily outweigh the initial investment.

Switch your showerhead

Another way to save both water and energy is by installing a low-flow showerhead. These showerheads are designed to use less water without sacrificing water pressure.

Older shower heads can use over 20 litres of water per minute, whereas newer, energy-efficient ones often use under 9 litres. By reducing the amount of water used, you'll also reduce the energy required to heat it.

Change your laundry habits

Washing your clothes in cold water instead of hot can significantly reduce your energy usage, as heating water accounts for a large portion of the energy used in laundry.

You could also try air-drying your clothes on a clothesline instead of using a tumble dryer. This not only cuts down on electricity use but also takes advantage of natural sunlight, which is free and abundant.

Weatherproof your home

A more permanent solution to preventing drafts is weatherizing your home. This involves sealing gaps and cracks around windows, doors, and other areas where air might escape. You can use caulk for stationary gaps, and weatherstripping for movable parts like windows and doors. By taking this extra step, you’ll reduce heat loss and make your home more comfortable.

Adjust the thermostat

The temperature settings on your thermostat play a big role in your energy consumption. During winter, try to keep your thermostat between 18 and 20 degrees Celsius, and during summer, aim for 25 or 26 degrees.

Every degree above or below these optimal ranges can add up to 10% more to your heating and cooling costs. By making these small adjustments, you can prevent excessive energy use while still keeping your home comfortable.

Switch to energy-saving appliances

Consider upgrading to energy-efficient appliances that come with eco-settings and energy ratings. These appliances, such as washers, dryers, dishwashers, fridges, and freezers, typically use 9% to 25% less energy than their traditional counterparts.

While these appliances may cost more upfront, their energy savings can make them a worthwhile investment in the long term.

Ensure your fridge and freezer are running efficiently

Your refrigerator and freezer are among the most energy-hungry appliances in your home. Set your fridge temperature between 4 and 5 degrees Celsius, and your freezer between -15 and -18 degrees Celsius for optimal energy use.

Ensure that both appliances are in a cool, well-ventilated area, away from direct sunlight and heat sources. Regularly defrost your freezer to prevent ice build-up, which can reduce efficiency. If you have multiple fridges or freezers, consider whether you really need them, as cutting down on unnecessary units can save you money.

Check for drafts

Drafts can significantly reduce the efficiency of your home’s heating and cooling systems. Use draft stoppers on doors and windows to prevent warm or cool air from escaping.

These simple, inexpensive items help maintain the desired temperature inside your home without straining your heating or cooling system. If you're handy, you can even make your own draft stoppers, or you can purchase them in a variety of styles.

Invest in insulated curtains

Insulated curtains are another simple yet effective way to save energy. These curtains not only help keep your home at a comfortable temperature by blocking out heat in the summer and retaining warmth in the winter, but they also help block out light and noise, which can improve your overall comfort.

Investing in good-quality, insulated curtains can reduce your reliance on heating and cooling systems, saving both energy and money.

Check your windows

Replacing old windows with energy-efficient double or triple-glazed windows can make a huge difference in your home's energy use. These windows help keep your home warm in winter and cool in summer by offering better insulation.

Low-emissivity (low-E) glass is the most energy-efficient option available, reflecting heat away from your home. While the initial investment might be high, the savings on heating and cooling costs over time can be significant.

Plant trees around your home

Adding trees to your garden can significantly reduce your home’s heating and cooling costs. By planting trees on the south and west sides of your house, you can block out the sun in summer, reducing the need for air conditioning. In winter, trees can act as a barrier to cold winds, helping to keep your home warmer and reduce heating expenses.

Upgrade your HVAC system

Upgrading your heating, ventilation, and air conditioning (HVAC) system to an energy-efficient model can help you save on energy costs for years to come. Make sure your ducts are sealed and insulated properly to prevent energy loss. An efficient HVAC system can reduce your heating and cooling costs by up to 20%.

Install solar panels

Installing solar panels is a fantastic way to reduce your dependence on grid electricity and start generating your own renewable energy. With a variety of payment plans and solar rebates available, it’s easier than ever to invest in solar power. Solar panels can provide long-term savings by reducing your electricity bill and making your home more energy efficient.

When you embrace both long-term and long-term energy-saving strategies, you can significantly reduce your energy consumption and lower your electricity bills. Every change you make will help you save money in the long run.

Get in touch with Compare Energy

Instead of dealing with bill shock when you receive your electricity bills, why not let our team of Aussie-based experts help you with finding a better plan?

Switching to an energy plan that matches both your needs and budgets is the best thing that you can do for your wallet. Call our team on 1300 790 106 today; let's chat!