Victoria tops global rankings for switching
Victoria has been named the most competitive retail energy market in the world, with more than one quarter of Victorians switching their energy supplier in 2007.
The fourth VaasaETT World Energy Retail Market Ranking Report has found that Victoria is the most competitive retail energy market in the world, with customer switching rates exceeding 25 per cent last year. Other Australian markets performed well, with South Australia a close 2nd, and New South Wales and Queensland ranking in 5th and 7th place respectively with switching rates of 10-15% per annum.
Globally, the UK and Belgium were also rated as hot switching markets, coming in 3rd and 4th place respectively. However, almost half of the 50 deregulated energy markets surveyed exhibited little switching activity, with less than one per cent of their customers switching energy supplier each year.
The report said Victorians were very active switchers due to a combination of strong competition, with a dozen energy suppliers competing in the market, and, as a result of the drought's impact on wholesale energy costs, the highest annual increases in retail energy prices in the country.
Welcoming the report, switchwise.com.au founder Shaun Johnson said that it was great to see that Australians were actively exercising their right to choose. However, he said that it was unfortunate that the majority of consumers had been switching energy suppliers without sufficient research. "A truly competitive market means that consumers have access to high quality information that enables them to easily compare the prices and services offered by suppliers competing in that market. Switchwise.com.au has filled this void by providing an easy to use online calculator that compares electricity and gas prices and plans at the suburb level."
Notes to Editors
Data sourced from the VaasaETT World Energy Retail Market Ranking Report 2008.
Released: 19 November, 2008