Millions of Aussies Are Already Struggling to Be Hit by a Huge Electricity Bill Price Hike Starting Today — Here’s How Much Extra Your State Will Be Stung
- Major electricity retailer has raised prices
- The changes take effect from Wednesday
- It will add hundreds of dollars to annual bills
Millions of Australian households have been hit with an increase in electricity prices, on top of nine consecutive interest rate hikes, after a major retailer raised its prices.
Energy Australia, which has 2.4 million electricity and gas customers, increased its variable contracts by 14.1 percent on Wednesday, increasing annual bills by hundreds of dollars.
Contracts are usually reviewed at the start of the new fiscal year on July 1, in line with government industry price revisions, but competitor Origin made an increase in January and Energy Australia followed suit.
It is likely that AGL, along with other smaller second-tier retailers, will also increase their rates, but will wait until July.
The annual cost increase varies between states and territories and also between private or corporate customers.
The price hike will affect millions of Australian households already hit by higher interest rates, petrol and food prices (stock image)
Energy Australia residential customers in Queensland get an additional $301 a year, in NSW an additional $276, in South Australia an additional $252 and in the ACT an additional $221.
Customers in Victoria, Western Australia and the Northern Territory are not affected at this stage.
ENERGY AUSTRALIA PRICE RISES
• 10.2 percent or $221 per year in the ACT
• 12.4 percent or $276 per year in NSW
• 14.1 percent or $301 per year in QLD
• 10.9 percent or $252 in SA
SMALL TO MEDIUM BUSINESS:
• 9.2 percent or $604 per year in the ACT
• 9.7 percent or $552 per year in NSW
• 12.5 percent or $641 per year in QLD
• 9.7 percent or $516 per year in SA.
Comparison website Compare the Market’s general manager of energy, Anthony Fleming, said it was more expensive to generate electricity due to plant outages, labor shortages, inflation and global supply chain problems.
“We know that the federal government budget projected electricity prices to rise by 30% in fiscal year 2023-2024, which could increase electricity bills by the hundreds over the next year,” said Mr Fleming.
“However, we also know that the government introduced a price cap on wholesale gas prices last month, which could help reduce costs at plants that still use gas to generate electricity.
“Experts from Australia’s energy regulator expect electricity prices in 2023 to be lower than originally expected because of the cap, and to fall in 2024.”
Australians affected by electricity or gas price increases will be contacted directly by their retailer about how much their prices will increase and when new prices will come into effect.
The electricity increase comes just weeks after all three tier 1 gas retailers – Origin Energy, AGL and Energy Australia – raised gas prices by 5 to 26 percent.
There is one advantage: electricity retailers must inform customers whether they can offer a cheaper rate plan.
Gas prices were raised a few weeks ago by Origin, AGL and Energy Australia by between 5 and 26 percent
That change is already in effect in Victoria and will apply in Queensland, NSW, the ACT, SA and Tasmania from September 30.
“In some cases, the same retailer has offered both the most expensive and the most affordable plan in some locations,” Mr Fleming said.
“Customers don’t always know what to look for on their bills and this change makes it easier to know if you’re paying more unnecessarily.”
TIPS TO CONTROL PRICE RISES
Talk to your retailer if you are under financial pressure:
They may be able to offer payment plans, smooth out bills, put you on a hardship plan, or provide financial advice. As long as you start the conversation and stick to your payment plan, your power supply will continue.
Get out of debt to cover energy debts:
Hardship programs through your electrical store do not carry any interest. If you use other methods like credit cards or loans they will.
Compare plans and prices:
If you find a cheaper deal, you may be able to switch and save within two business days. When comparing, pay close attention to the percentage below the current reference price.
Look beyond the usage price:
It is very likely that daily delivery costs will also increase, so keep this in mind when comparing plans. Also keep an eye out for discounts. While many plans offer benefits, they may not always give you the best bang for your buck. Increased discounts probably won’t match the pace of your price increases, so you’ll end up paying more for your total usage anyway.
Changes around the house when it comes to electricity consumption:
• Use smart appliances that you can adjust remotely to make you more energy efficient.
• Turn off appliances, game consoles, computers, and wall lights when not in use.
• Use solar energy generated by your solar panels during the day or store it in a battery for later use.
• Avoid power hungry devices during peak hours. It is usually cheaper to run appliances during off-peak hours at night or on weekends.
Source: Compare the market