1 July price change

Regulated Default Offer prices are reset on 1 July every year, and the convention is that energy retailers use this date to also revamp their Market Offers. This leads to a market-wide retail electricity price change, effective from 1 July each year, that affects virtually every plan from every retailer.

Most retailers introduce their new plans and prices to the market on 1 July, but some may adjust their timing and release new prices a bit later. Also, some retailers will adjust their pricing after gaining visibility of competitors' new prices.

So there can be some ongoing price movements in the early part of July, and it's easy to think that it makes sense to wait until the dust has settled before deciding whether to switch.

However, beware of letting perfection get in the way of improvement — in the words of Winston Churchill:

To improve is to change; to be perfect is to change often.

If you're already being overcharged, waiting until all the price changes come into effect benefits no one but your retailer, allowing them to continue overcharging you for longer.

If you're being overcharged, the only party that benefits from you delaying a switch decision is your retailer, which gets to continue overcharging you for longer.

If you're on a competitive plan, then it makes more sense to sit tight and see what the new market conditions will bring.

Either way, Bill Hero has your back and will let you know exactly what savings are available to you in the market.

Subscribe to Bill Hero

Not a subscriber yet? What are you waiting for! Never overpay for energy again! Bill Hero automatically compares every bill to help keep you always on the best priced plan.

Subscribe to Bill Hero

Option 1: Wait Until week 2 of July

Advantages

Visibility of New Pricing: Retailers will release their new plans in early July, and any resulting changes should be complete by the second week of the month. Waiting allows you to compare using up-to-date pricing.
Avoid Repeat Switching: If you switch early and your new retailer then hikes their prices, you might find you need to switch again.

Disadvantages

Opportunity Cost: If you're currently on an uncompetitive plan, you'll likely continue to overpay for weeks while waiting.
Retailer Transparency Lag: Not all retailers disclose their price changes in a timely manner. Some retailers may not update their pricing until well after July 1, and others may adjust their pricing in response to competitor pricing as it becomes visible in the market, leading to decision delays.
Price rise expected: The general expectation is that prices will increase rather than decrease in this price change. That means that any more competitively priced offers now available may no longer be available to you after the price changes roll through.

Option 2: Switch Now to a Better Deal

Advantages

Fast-track your Savings: If you're on a legacy plan or with a retailer that has high markups, switching immediately will more quickly reduce your bill.
There's no penalty : There's no penalty for switching, and if the new plan’s price later becomes unattractive, you can always switch again.

Disadvantages

Risk of Post-Switch Price Hike: If the retailer you switch to announces price increases after 1 July, its possible they could include existing customers under the price change, even those that have only just been onboarded. Under this scenario, you may need to re-evaluate and switch again in the near future.
Cooling-Off and Transfer Times: Switching doesn't take effect instantly — there’s a minimum 10-business-day cooling-off period.

Strategic Approach: Hybrid Option

Bill Hero will show you exactly where your plan sits in the market on every billing cycle.

If your current plan is overpriced beyond your Bothered Threshold, it's probably worth switching now. Just accept that it's possible you might find it worthwhile switching again in the future.