$300 electricity bill hike looming for millions as price increases confirmed: ‘Inevitable'

Yahoo

11 hours ago

Millions of Australian households will face higher electricity prices in the coming weeks. Major retailers AGL and Origin have confirmed their price changes for customers, and some households will see their bills increase by as much as $300 next year.
AGL's prices will increase by 13.5 per cent in New South Wales, 7.8 per cent in South Australia, 7.5 per cent in Queensland and 6.8 per cent in Victoria from July 1. NSW customers will see their bills go up by as much as an extra $300 a year, based on medium usage.
The average increase across all NSW customers will be $267, according to the retailer. Meanwhile, South Australia customers will see an average $200 increase, Queensland $155 and Victoria $110.
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Origin will raise its prices by an average of 9.1 per cent in NSW, 5.5 per cent in South Australia, and 3 to 4 per cent in Queensland.
Electricity charges for Victoria have not been locked in yet, but gas will cost the average Victorian household an additional $85 a year.
Aussie households will receive letters and emails from their energy retailers over the coming weeks ahead of price changes coming into effect from July 1.
It follows the decision by the energy regulators to increase the majority of default prices for the year, which will see standard energy plans rise by up to $228.
These are contracts offered to customers who can't or don't shop around. While only 10 per cent of customers are on default offers, retailers use the default pricing as a benchmark for their market contracts.
The latest price hikes have been blamed on increased network charges, higher costs to serve customers and higher wholesale electricity expenses. The federal government has extended its energy bill relief until the end of the year, with the first $75 quarterly instalment to hit accounts from July 1.
The price hikes follow two years of price increases across most networks, with the average annual electricity bill increasing by as much as $360 since June 1, 2023.
Canstar data insights director Sally Tindall has urged households to shop around.
'The cold hard truth is that electricity price hikes are pretty much inevitable in states such as NSW, Queensland and South Australia this winter after the regulator approved hikes to the reference prices across all networks in these states,' she said.
'The exact costs for your daily supply charge and electricity rates are up to each provider, however, unless you're on an embedded network or in a state where there are limited options, this is one bill you can, and should, take control of.'
Tindall said the reference price could be a good starting point, with providers required to tell you where the cost of your plan sits in relation to it.
The greater the difference a plan is below the reference price, the more competitive it is.
'In Sydney, single rate plans are, on average, 7 per cent lower than the reference price, however, there are plans available that are up to 23 per cent lower than the regulator's benchmark,' she said.
'In Brisbane, the gap is even wider, with the average discount listed at 6 per cent, while the highest is 27 per cent.'
Australians can use the Australian Energy Regulator's Energy Made Easy comparison website to compare prices. Victorians can use Victorian Energy Compare.