With the impending shut down of the Hazelwood power plant expected to cause a surge in household gas and power bills, now is the time to start looking for alternative energy to help you reduce your spending.
Analysts say Hazelwood’s closure could see electricity bills rise an extra $300 a quarter, and notably the giant energy company AGL has already increased residential prices by 10 per cent.
Hazelwood power station was the cheapest energy generator in Australia and its cessation means NSW, Victoria, South Australia and Tasmania have to find other alternative sources of energy starting April next year.
According to the Australian Energy Council spokesman, power prices are likely to skyrocket in the states that depended on Victorian imports.
Despite the cost of generating power remaining constant, producers of energy are charging retail companies an extra 20 per cent more for future contracts since Hazelwood’s cheap competition will be a thing of the past.
AGL predicts that increased wholesale energy prices means residential consumers on standing offers will see their bills shoot 9.9 per cent in 2017.
And, if your energy bill has never made your eyes water, be sure to embrace yourself.
Mr. Scott Pape, a barefoot investor said he’d rather “stab his eye with a fork” than encourage households looking to cut down on their budget to go for tight tips as a way of mitigating the rising electricity prices. In its place, Pape offers tips on how the average Australian household can effortlessly save thousands of dollars each year.
Mr. Pape stated that most Australians were getting ripped-off on their home loans.
He added that people should liken their mortgage interest rates to the price of a second-hand car.
“Nobody pays the price advertised for a used car, they knock it down,” he remarked.
Mr. Pape advises homeowners to contact their home loan providers and push for a lower interest rate.
“It’s easier to b**** about a home loan than it is to switch,” he said.
“Switching it is a pain, so ring up and say your home loan is too high. A study found four in five people will get an interest rate reduction, just by b****ing.”
He also noted that an average household pushing for a drop in interest rate on their mortgage loan could save thousands of dollars annually, even to a maximum of $20,000 over the lifetime of their homes.
In addition, Mr. Pape said the average Australian household wastes $550 annually on bank fees.
“In my view, the easiest way to free up an extra $550 is to stop paying off the bank executives’ BMW,” he added.
“There are accounts out there that have zero fees and high interest rates.
ING and Me Bank both have transaction accounts with zero bank fees.”
Mr. Pape remarked that this was a 10 minute money saving trick that could make a big difference for Australian households.
“You’re saving $5000 over 10 years, it’s huge,” he said.
“Big wins for a small amount of effort.”