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Rising Electricity Prices Set to Impact Australian Households
From 1 July, millions of Australian households will experience significant increases in electricity costs, with major retailers AGL and Origin announcing their price adjustments. Some households may see annual bills rise by as much as $300.
AGL Price Increases
AGL has revealed that electricity prices will rise as follows:
- New South Wales: 13.5% increase (average annual bill increase of $267; up to $300 for medium usage)
- South Australia: 7.8% increase (average increase of $200)
- Queensland: 7.5% increase (average increase of $155)
- Victoria: 6.8% increase (average increase of $110)
The actual figures for Victorians are pending, but gas charges will jump by an estimated additional $85 annually.
Origin Price Adjustments
Origin will implement an average price increase of:
- New South Wales: 9.1%
- South Australia: 5.5%
- Queensland: 3 to 4%
Factors Behind the Increases
The recent price hikes are attributed to rising network charges, increased service costs, and escalating wholesale electricity prices. The Australian Energy Regulator’s recent decision to raise the majority of default electricity prices is also a contributing factor, allowing standard energy plans to increase by up to $228 for customers who do not actively compare or switch suppliers. While only 10% of consumers are on these default offers, they serve as an important benchmark for market contracts.
The federal government is extending its financial relief measures, with the first quarterly instalment of $75 beginning from 1 July.
Historical Context and Consumer Advice
These changes come after two consecutive years of price hikes, resulting in average annual electricity expenses soaring by as much as $360 since June 2023, according to local data insights. Canstar’s director, Sally Tindall, encourages households to explore competitive pricing options as price increases are projected for NSW, Queensland, and South Australia this winter.
Tindall explains, “Electricity price hikes are largely unavoidable following the regulator’s approval of higher reference prices across these states. However, unless you are in a limited service area, you should consider switching providers to take control of your bills.”
The reference price can serve as a useful guideline; the closer a plan’s cost is to this price, the less competitive it is. For example, single rate plans in Sydney are, on average, 7% below the reference price, with some as much as 23% lower. In Brisbane, average discounts are around 6%, with certain plans offering discounts of up to 27%.
Tools for Comparisons
Australian consumers can utilise the Energy Made Easy comparison website to evaluate their energy plans effectively. Residents in Victoria have the option to use the Victorian Energy Compare site for tailored comparisons.
In light of the forthcoming price increases, homeowners are advised to review their current plans and seek competitive alternatives to mitigate costs.
