The EOFY opportunity you may be missing
The end of financial year or "EOFY" creates a unique opportunity to get on a better deal while retailers are offering incentives! It's a great time to be consumer! 😁
The end of financial year or “EOFY” creates a unique opportunity to get on a better deal while retailers are offering incentives!
It’s a great time to be consumer! 😁
Many businesses run EOFY promotions to reach their sales targets for the year and are prepared to offer you great value in June.
Are there opportunities to get a better energy deal too?
The answer: Yes!
Energy retailers, like AGL, Origin energy and EnergyAustralia offer large discounts in the market as they compete for your business in June.
There is generally a “reset” of headline prices in early July, with knock-on effects on the related discounts on offer.
Let’s look at what happened to headline prices last year.
The big three retailers put their flat rate price of electricity up by an average of 17% in July 2017. (flat rate price in Ausgrid)
Retailers generally have the right to change their headline price at any time, but must honour their discounts for a fixed “benefit period”, usually 12 months.
As a consumer, you are generally free to change energy provider whenever you like. Lock in contracts and large exit fees have been largely removed from the market in NSW and SE QLD.
Let’s look at what happened with discounts on offer.
The discounts offered in July were clearly higher than in June.
This means it would’ve been a great time to get on a better deal in July 2017.
Even if you had gotten on a new deal in June, you can switch again!
You can also see that the window of opportunity to secure a good discount was fleeting.
Within three months all three big retailers had returned their discounts to at or below what they were in June.
Make hay while the sun shines 😀
So, what do we expect this year?
All three retailers have come out saying that their headline rates will be flat to slightly down in July.
That is good news!
But what will happen to discounts? 🤷♂️
It is our view that the discounts currently offered to make up the EOFY numbers will be reduced or withdrawn in July.
This would be the opposite of last year.
So, it makes a lot of sense to lock in a good discount rate before the EOFY!
Hey, if discounts increase, you can always switch again. It’s a buyers market!
How do you stay on top of this?
You can use the Handled app to quickly see the deals available in market, switch plans and set alerts to know when prices have moved against you.
Download the app, upload your bill and get started today!