The ‘loyalty tax’ is a term used recently to describe the ploy used by electricity retailers who have employed attractive discounts or offers to acquire new customers.
But the problem is these ‘benefits’ expire after a fixed period – usually 12 months!!!!

After this time, these same customers are quietly moved into much a higher tariff arrangements. Hence the ‘loyalty tax” you are now paying by remaining where you are.
” Is it just electricity prices? “
We think it is a commonly used business model. (Even though it is counter intuitive!) It is also applies to: mobile phones, home contents insurance, private health funds, home loan interest rates and more. It could easily amount to $3,000 per year each or $5,000 plus for a family, that we are being penalized (or ripped off). We strongly recommend you shop around each 12 months for a new providers (or at least, regularly threaten to take your business elsewhere). This is probably the only way to bring your loyalty tax back to zero!