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The Australian
26-05-2025
- Business
- The Australian
Households face up to $228 electricity bill hike after AER issues final default market prices
NSW households could have energy bill increases of up to 9.7 per cent from July 1, with South Australian and south east Queensland customers facing a hit of up to 3.7 per cent, according to the energy regulator. The figures were released in the final determination of the Default Market Offer, set by the Australian Energy Regulator (AER) on Monday. The offer sets the maximum price caps for bill increases for residential customers on default plans, about 8 per cent of customers, and come into affect from the new 2025-26 financial year beginning on July 1. Households in south east Queensland will see prices increase by 0.5 per cent to 3.7 per cent, South Australians face price hikes of between 2.3 per cent and 3.2 per cent, while NSW residents will be hit the hardest, with increases between 8.3 per cent and 9.7 per cent. Prices for NSW residents were slightly higher than the hikes listed in the AER's April draft determination. NSW residents could face an annual bill hike of up to 9.7 per cent in the 2025-26 financial year. Picture: NewsWire/ Gaye Gerard Modelling by Canstar Blue estimates households on default plans could see their power bills increase by $71 to $228 over the next financial year. NSW customers with retailers who source their energy from Essential Energy, one of the state's three electricity distributors, could see their bills increase by 9.1 per cent, with the average annual bill rising from $2513 to $2741. Although the price caps only apply to the minority of residential customers on default plans, Compare the Market's head of energy Meredith O'Brien said the offer would likely result in price charges across the market. 'Whether or not you're on a standing offer, we know that households across Victoria, South Australia, South East Queensland and NSW will likely see changes to their electricity prices from 1 July as a result of today's determination,' she said. 'When the price of electricity standing offers change, so too do other plans on the market.' Energy Minister Chris Bowen acknowledged that energy bills remained 'too high,' and urged households to compare plans using platform's like the government's Energy Made Easy comparison tool. 'With energy plans that are between 18 per cent and 27 per cent cheaper than the DMO it's worth shopping around,' he said. 'We also know 80 per cent of households aren't on the cheapest energy plan they could be which is why we're making it easier for households to find and switch to better plans. Check the Energy Made Easy website or for the cheapest plans in your area.' Energy Minister Chris Bowen urged households to compare prices and switch to a cheaper plan. Picture: NewsWire/ Martin Ollman Coalition energy spokesman Ted O'Brien seized on the increases to the increase to prices, and said bills would continue to go up under Labor. 'While the Opposition acknowledges it did not meet expectations at the recent election the fundamental issues in Australia's energy market under Labor persist – prices continue to rise,' he said. 'The Coalition will take the time to listen and to get it right, but the message from Australian families remains consistent – prices remain too high and the pressure is mounting. 'Constant assurances of cheaper power from the Albanese Government have not been born out. 'Australians are asking their government a simple question today: when will these price rises stop?' Canstar Blue's data insights director Sally Tindal also urged customers to compare plans, stating consumers could save more than $400 a year. 'If you get a note from your provider telling you your electricity prices are on the rise, use it as an opportunity to check whether there's a cheaper plan out there,' she said, telling households to act before the July 1 deadline. 'Switching now should not preclude you from checking again in a few months time after the dust has settled on the price hikes, provided you're not on a plan with a lock-in contract. 'Our research shows switching from an average priced plan to one of the lowest in the market could save you over $400 a year in some cases – this for some households could be enough to mitigate the upcoming price hikes.' AER chair Clare Savage attributed the increases to the rising cost of energy production. 'We know this is not welcome news for consumers in the current cost-of-living environment,' she said. 'As noted in our draft determination, sustained pressures across almost all components of the DMO have driven these price rises, with wholesale and network costs rising in most jurisdictions between 1 per cent and 11 per cent, and retail costs between 8 per cent and 35 per cent compared with last year.' Jessica Wang NewsWire Federal Politics Reporter Jessica Wang is a federal politics reporter for NewsWire based in the Canberra Press Gallery. She previously covered NSW state politics for the Wire and has also worked at and Mamamia covering breaking news, entertainment, and lifestyle. @imjesswang_ Jessica Wang
Daily Mail
26-05-2025
- Business
- Daily Mail
Why your electricity bill is set to spike within WEEKS
Australians in one state are facing a $228 annual hike in their electricity bills with the pain likely to get worse as government-funded rebates end and more charge electric cars at home. The Australian Energy Regulator final determination report, released on Monday, had bad news for consumers, starting on July 1 as winter pushes up demand for heaters. This is based on what retailers can charge customers in NSW, south-east Queensland and South Australia during the next financial year under a default market offer. High demand and network outages were blamed for the steep wholesale prices feeding into higher retail prices, along with low levels of renewable energy as Australian governments try to phase out coal-fired power stations. 'These spot prices were partially driven by a greater frequency of high price events, which resulted from a range of factors including high demand, coal generator and network outages, and low renewable generation output,' the AER said. In regional New South Wales, Essential Energy residential customers face the biggest increase of $228 or 9.1 per cent, with the AER citing 'improved network resilience to address climate change-related risks' along with 'the integration of consumer energy resources including rooftop solar, batteries and electric vehicles'. This takes the average annual electricity bill for 2025-26 to $2,741 , which is even steeper than the $188 or 8.5 per cent increase for Endeavour Energy customers in Sydney, who will be paying $2,411. The increases in NSW were up to 6.7 per cent above forecast inflation, with more homes having a smart meter monitoring when residents used electricity. 'Retail costs have risen for all customers in each region of NSW, primarily due to increases in retailers' operating costs,' the AER said. 'Increases in bad and doubtful debt costs and smart meter costs also contributed to the overall increases.' In south-east Queensland, Energex's increases were more moderate at $77 or 3.7 per cent, or 1.3 per cent above forecast inflation to an average of $2,143. South Australians were set to see a $71 or 3.2 per cent increase, which was 0.8 per cent above predicted inflation for SA Power Networks customers, for an average bill of $2,301. Canstar data insights director Sally Tindall said the increases were bad news for customers. 'These electricity price hikes will knock the wind out of the sails for many families, just when they thought they'd turned a corner in the cost-of-living crisis,' she said. 'Price hikes of up to $228 for an average household will be too much for some families to bear, particularly as we enter one of the most energy-intensive periods of the year.' The AER projected bigger increases for customers without a controlled load, where an electrical appliance like a dishwasher can be operated at a different time to the rest of the home to save money during an off-peak period. The federal government's quarterly $75 rebates were extended until the end of December in the pre-election March Budget, where the price came off the bill without customers having to lodge an application for relief. This has seen electricity bills fallen by 9.6 per cent in the year to March, helping to reduce headline inflation to just 2.4 per cent. The AER argued its determination regarding existing customers struck a balance between 'protecting consumers from unjustifiably high prices, while also allowing retailers to recover costs'. 'Retail costs have seen larger increases in all regions,' it said. 'While this source of costs makes up a smaller portion of the total price, the rate of growth means it has contributed more than other elements to the price rises in some regions.' Wholesale power prices make up 31 to 45 per cent of the AER's default market offer arrangement on electricity bill increases, compared with 11 to 16 per cent for retail costs. Network costs made up 33 to 48 per cent of the approved price rise.
Sydney Morning Herald
26-05-2025
- Business
- Sydney Morning Herald
Higher power bills to kick in from July
The Australian Energy Regulator released a draft decision on power price rises in March for consultation with power companies and other stakeholders. Loading Its prices have remained relatively stable, with the average default offer in Victoria rising $8 in the final determination. Essential Energy in regional NSW had the highest variation between the draft and final determination, with a rise of $28. Price rises were attributed to a range of factors affecting renewable and fossil-fuel sources. A significant driver of higher power prices, the regulator said, was breakdowns at coal-fired power plants, which require increased reliance on gas-fired power plants that draw on the highest cost fuel source. Renewables were also a contributing factor, with rising infrastructure costs to pay for new transmission lines needed to link wind and solar farms to population centres, as well as stretches of low wind that forced increased reliance on fossil fuels. Renewables currently supply more than 40 per cent of the electricity in the grid, and the Albanese government is aiming to make it 82 per cent by 2030. Prime Minister Anthony Albanese promised at the 2022 election that the green power shift would cut power bills by $275 by 2025. However, bills have risen by up to $400 for some residents in NSW and up to $250 for some Victorians since the Albanese government was elected. Albanese said the renewables transition was an important element of the government's plan to cut emissions to address the impact of climate change 'People who question the science need to look out their window,' Albanese said on Monday as he addressed media from the National Situation Room, where he was briefed on the impact of floods on NSW North Coast. 'We know the cheapest form of new energy is renewables, backed by gas, backed by batteries and backed by hydro for firming capacity. 'We've always had floods and droughts in Australia … but what we do know is that they are more frequent and they are more intense.' The regulator's chairwoman Clare Savage said customers could get better deals than the default offer by shopping around using the free, independent Energy Made Easy website. 'You cannot have a shift to renewables without having confidence because you will lose community support if people walk into this room here and flick on the switch and the lights don't go on,' Savage said. 'We need to make sure that there is security of energy supply at the same time as we support the transition.' Savage said while the cost of expanding electricity networks had contributed to higher bills over the coming 12 months, she expected the new infrastructure to help lower bills over the medium to long term. 'As we start to see increased use of the system, from increased demand, we should see that cost pressure in bills come down,' Savage said, noting the uptake of electric cars and appliances such as hot water heaters and reverse cycle air conditioners. Energy Minister Chris Bowen announced in April that the government would offer another round of energy bill relief worth $150 for households, valid until the end of the year. Homeowners with solar panels can also save 30 per cent on a one-off home electric battery purchase, in a scheme to start on July 1. Loading '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,' Bowen said. The default market offer operates as a price cap and offers up to 27 per cent cheaper are available, depending on location. Bowen said around 80 per cent of households are not on the cheapest plan and he encouraged people to visit the Energy Made Easy website or
The Age
26-05-2025
- Business
- The Age
Higher power bills to kick in from July
The Australian Energy Regulator released a draft decision on power price rises in March for consultation with power companies and other stakeholders. Loading Its prices have remained relatively stable, with the average default offer in Victoria rising $8 in the final determination. Essential Energy in regional NSW had the highest variation between the draft and final determination, with a rise of $28. Price rises were attributed to a range of factors affecting renewable and fossil-fuel sources. A significant driver of higher power prices, the regulator said, was breakdowns at coal-fired power plants, which require increased reliance on gas-fired power plants that draw on the highest cost fuel source. Renewables were also a contributing factor, with rising infrastructure costs to pay for new transmission lines needed to link wind and solar farms to population centres, as well as stretches of low wind that forced increased reliance on fossil fuels. Renewables currently supply more than 40 per cent of the electricity in the grid, and the Albanese government is aiming to make it 82 per cent by 2030. Prime Minister Anthony Albanese promised at the 2022 election that the green power shift would cut power bills by $275 by 2025. However, bills have risen by up to $400 for some residents in NSW and up to $250 for some Victorians since the Albanese government was elected. Albanese said the renewables transition was an important element of the government's plan to cut emissions to address the impact of climate change 'People who question the science need to look out their window,' Albanese said on Monday as he addressed media from the National Situation Room, where he was briefed on the impact of floods on NSW North Coast. 'We know the cheapest form of new energy is renewables, backed by gas, backed by batteries and backed by hydro for firming capacity. 'We've always had floods and droughts in Australia … but what we do know is that they are more frequent and they are more intense.' The regulator's chairwoman Clare Savage said customers could get better deals than the default offer by shopping around using the free, independent Energy Made Easy website. 'You cannot have a shift to renewables without having confidence because you will lose community support if people walk into this room here and flick on the switch and the lights don't go on,' Savage said. 'We need to make sure that there is security of energy supply at the same time as we support the transition.' Savage said while the cost of expanding electricity networks had contributed to higher bills over the coming 12 months, she expected the new infrastructure to help lower bills over the medium to long term. 'As we start to see increased use of the system, from increased demand, we should see that cost pressure in bills come down,' Savage said, noting the uptake of electric cars and appliances such as hot water heaters and reverse cycle air conditioners. Energy Minister Chris Bowen announced in April that the government would offer another round of energy bill relief worth $150 for households, valid until the end of the year. Homeowners with solar panels can also save 30 per cent on a one-off home electric battery purchase, in a scheme to start on July 1. Loading '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,' Bowen said. The default market offer operates as a price cap and offers up to 27 per cent cheaper are available, depending on location. Bowen said around 80 per cent of households are not on the cheapest plan and he encouraged people to visit the Energy Made Easy website or
Sky News AU
24-05-2025
- Climate
- Sky News AU
'Can't promise that': NSW Premier Chris Minns unlikely to commit to buy-back scheme as residents across the the Mid North Coast begin mammoth recovery from flood destruction
New South Wales Premier Chris Minns is unlikely to commit to a buy-back scheme to re-purchase homes from residents in flood-affected areas, amid thousands of properties damaged from the latest bouts of wild weather on the Mid North Coast. Residents and recovery crew braced themselves to begin a long journey of clean-up efforts on Saturday following a devastating week of record rainfall for much of the NSW coast. Five people have been killed in flood-related tragedies so far, with roughly 50,000 people still stranded. NSW SES estimates that at least 10,000 properties were damaged by the deadly weather event, with several communities still recovering from the impacts of cyclone Alfred. About 50,000 people in more than a dozen towns across the NSW Hunter and Mid North Coast regions have also been left without power. Essential Energy reported the most impacted areas remain Taree, Port Macquarie and Kempsey as efforts begin to restore electricity for thousands along the Mid North Coast. The state Premier appeared before media on Saturday and said rescue crew have a "mammoth task" ahead of them after a record deluge wreaked havoc across the flood-ravaged towns. 'Now we're through the worst of the weather, and floodwaters are receding, we want people to be safe during the clean-up phase, and we're seeing resilient communities doing just that,' Mr Minns said. "We know this is a mammoth task ahead of us. We want to particularly acknowledge the enormous courage the local community has had to exhibit in the last few days." Mr Minns further added he cannot promise the state government will commit to a buy-back scheme that was previously implemented by the Coalition government during the 2021 northern NSW floods. "Look I can't promise that," he said. The Premier then shifted the focus on to the "resilience" of communities and the township that is hugely important. "I have to assess what the flood damage is, what the likely impact has been. There's been different programs that have been operating in the Northern Rivers," he continued. 'Some have worked better than others, but I obviously don't want to replicate a program that hasn't delivered the kind of resilience that towns in the Northern Rivers had hoped for down here, and we need to make sure that whatever is approved for the mid north coast and the upper areas of the Hunter region works. 'That's going to take a little bit of time. 'We said from the beginning, we want to walk this journey together with the communities on the mid north coast, and that means that we're here for the long haul. 'But I've seen these programs, even with the best of intentions, be implemented and then not actually work or apply to just a small number of people, or the money runs out before it can actually make a difference in the community, and we're determined not to repeat the mistakes of the past, given we're having more and more of these natural disasters." With the state government now under crunch time to help the flood-ravaged communities recover, Mr Minns listed his priorities as to first save those who are in imminent risk of death, then to supply food and shelter to residents and the "last priory" is the clean up effort.
