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Electricity in a box begged customers to leave, electricityinabox higher prices

The CEO of Electricityinabox is Morgan Duncan.
The CEO of Electricityinabox is Morgan Duncan.
Electricityinabox, a company in Victoria that sells energy, begs its customers to leave.

The CEO of an Australian energy company told customers they would be "crazy" to stay with the company and pay more money.

As electricity prices keep going up, a Victorian energy company told its customers in a shocking letter that they should switch to another company as soon as possible. The company said that the letter was not a "scam."

Electricityinabox, a small retailer, is the seventh company to tell customers to go elsewhere. ReAmped, LPE, Discover, Elysian, and Future X have all said the same thing.

The CEO of Electricityinabox, Morgan Duncan, told customers that "only the lazy or crazy would stay" with his company because its rates are going up 95% on July 1, which would almost double their bills.

It's a direct letter.

"You need to switch power companies. It says, "The sooner you do it, the more likely you are to find a good deal."

"Other stores bought energy a long time ago for a lot less money, and they can still give you a great deal. There may not be much time left or room for more customers. We suggest that you switch to a better deal right now, since switching isn't always instant. It can take more than a month in some parts of Australia. Act now to keep prices from going up."

Change now, or you'll be stuck with rising electricity prices.
Change now, or you'll be stuck with rising electricity prices.

Mr. Duncan also had to reassure customers that the company's email hadn't been "hacked" and that the request wasn't a "scam." He also said that customers wouldn't be helping the company by staying on.

He said that Electricityinabox wasn't going out of business, but that they were leaving "this part of the market." He also said that four other providers had also left.

Many fixed-rate plans are going away, and at least 11 retailers, like Momentum, Mojo, CovAU, and Nectr, are no longer taking on new customers. This is a bad sign for competition, and Momentum, Mojo, CovAU, and Nectr are among them.

It comes after regulators said that the government price cap on "default market offers" will go up by 1–9% in Victoria, 7% in South Australia, 11% in Queensland, and 8–14% in New South Wales for about 1 in 10 households.

Wholesale prices have gone up about six times since April 2021, which is why prices have gone up.

Gas prices are now limited to $40 per gigajoule, which is five times what they were a year ago.

There is no way to avoid the effects of rising prices':
There is no way to avoid the effects of rising prices':

Joel Gibson from One Big Switch said, "Some homes could see their bills more than triple if they don't switch retailers as soon as possible. We need to get this message out there."

"Smaller stores are also more likely to be hurt by these skyrocketing wholesale prices if they don't lose customers, so they need people to leave."

The tone of the letters from these smaller retailers says it all: "If people don't switch, their bills could skyrocket and smaller retailers could go out of business."

But a new study by Finder shows that one million Aussies with rising energy bills are too lazy to switch providers.

In the second quarter of 2022, the average Australian energy bill is $320. This is up from $296 in the first quarter, and there are warnings that even bigger increases are coming.

The research found that 56% of respondents would switch plans if they were offered a cheaper plan, and 21% would switch if they were offered a reward, like free streaming services.

One in five people (19%) would switch if they could get green energy. Others would switch if they could get energy, gas, and internet all in one package.

Bills need to be looked at by households.
Bills need to be looked at by households.

Sarah Megginson, the senior editor of money at Finder, said that rising energy prices are hurting hundreds of thousands of Australians.

"Coal and gas prices have gone up because of what's going on in Europe, and demand here in the U.S. has driven up coal and gas prices," she said.

"Australian energy retailers have been hit hard by rising wholesale electricity prices. They have no choice but to charge customers more or, in some cases, beg them to leave.“

Since 30–40% of a customer's energy bill is made up of wholesale prices, you can't avoid the effect of rising costs on your energy bills.

Ms. Megginson said that now is a good time to think about changing energy companies.

"Given what's going on in the energy market, every Aussie needs to look at their bills, keep an eye out for messages from their power company, shop around, and lock in a good energy deal before everything goes to hell," she said.

"When switching energy plans, it's important to keep an eye out for discounts, variable vs. fixed rate plans, disconnection fees, and other costs. Before you switch, it's also important to compare and call other providers."

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