Australian Energy Regulator slammed for increasing power bills by as much as 10 per cent
Australia's energy regulator has been slammed after announcing power bill increases, with one advocacy group saying the news was an 'enormous blow' for those already struggling.
Household electricity bills in NSW, Queensland and South Australia are about to go up by as much as 10 per cent following the Australian Energy Regulator's (AER) annual review.
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Standing offer plans in NSW are going up the most, with Essential Energy bills increasing by as much as $228.
In South East Queensland, customers will see an increase of $77, while in South Australia, it is estimated to be around $71.
The changes don't apply in Victoria or WA at this stage and will come into effect from July 1.
Caps on what retailers can charge households and businesses in NSW, South Australia, southeast Queensland are designed to protect the hundreds of thousands of customers who tend to set-and-forget their power plans.
Roughly 9 per cent of households and 18 per cent of small businesses are on default market offers (DMO).
The DMO is the annual maximum total bill amount energy companies can charge customers on standing offers.
Regulators update default market offers to reflect the cost retailers are paying generators for electricity and to have it transported through poles and wires.
The move has been slammed by the chief executive of the Australian Council of Social Service, an advocacy group supporting the disadvantaged.
Dr Cassandra Goldie said the increases were another blow for low-income earners who are already making 'enormous sacrifices'.
'People struggling the most are going without food, medication and other essentials to try to pay their energy bills,' she said.
'Others are selling belongings or turning to buy now, pay later schemes.'
AER chair Clare Savage said NSW was experiencing bigger increases in wholesale costs and transmission than other states.
'In NSW, we've seen some unexpected outages of coal-fired power stations, which can drive up that wholesale cost,' Savage told ABC Radio on Monday.
She also flagged boosted investment in networks to make them more resilient to cyber-attack and climate risks, such as the floods devastating parts of NSW.
Households and businesses nervous about energy bill hikes have been urged to shop around, with 80 per cent of customers likely to save money by chasing better deals.
Energy Minister Chris Bowen acknowledged power prices were putting pressure on households and businesses, pointing to extended bill relief in the last budget.
'It's clear energy bills for Australians remain too high, and we're providing help for people doing it tough as we deliver longer term reform,' he said.
Bowen also urged people to shop around, with savings of up to 27 per cent by switching to a competitive market plan.
Energy Consumers Australia chief executive officer Brendan French said the safety net system was not working effectively if priced as much as 27 per cent above market offers.
'The sector should be focused on reducing costs at all stages of the supply chain, and making networks as efficient as possible, otherwise consumers risk losing the benefits of the energy transition,' French said.
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