NSW to see largest power price rises as default rates revealed
Energy prices could lift anywhere from 0.5 per cent to 9.7 per cent in different parts of the national electricity grid, in figures released on Monday.
The Australian Energy Regulator (AER) releases a default market offer (DMO) — essentially a price safety net — that limits what retailers can charge customers in New South Wales, south-east Queensland and South Australia.
The prices are meant to protect customers who don't shop around, as well as provide consistency so that people can compare alternative retailers.
The offer takes into account issues like what customers can afford, the cost of the overall system, and the need for the different parts of it to make a profit.
In its report, the operator says the cost-of-living crisis has been among the top of its considerations.
To help with the cost of living, despite pressure from energy retailers and generators, the operator did not impose a fee of $22 on residential customers and $26 on small businesses.
The so-called "competition allowance" helps profits.
"(But) due to sustained cost-of-living pressures as indicated by the sustained nature of elevated underlying inflation, (the offer) does not include the competition allowance," the AER noted in its determination.
Still, prices will rise.
This is the final determination for Australia's most populous state, NSW, which will see the steepest price rises:
The offer also covers south-east Queensland:
The AER's determination also covers South Australia, which will see price changes between the other two states:
Victoria's energy regulator makes its own determination, which is also released on Monday.
The state's Essential Services Commission says residential customers on a flat tariff should expect to see a 1 per cent increase in prices, while small business customers can expect a 3 per cent rise.
All of the price increases take effect from July 1.
In its pre-election budget, the Albanese government announced an extension of electricity bill relief to the value of $75 a quarter for households and small businesses.
The bill rebates will apply for the two quarters at the end of this calendar year.
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