Latest news with #powerprices
ABC News
5 days ago
- Business
- ABC News
How much will power prices increase by next financial year? That depends on where you live
The Australian Energy Regulator's (AER) latest decision is set to see power prices rise for many people in three states. It announced what's called a Default Market Offer for the next financial year. Here's what it means for people in those three states — and what people in the rest of the country can expect. What's a default market offer? It's a cap electricity retailers can charge for power prices. Electricity retailers are the individual companies that sell power to homes and businesses — the company that sends you your power bill. But they don't generate the power they sell; they buy it from the wholesale market. The AER's default market offer (DMO) limits how much the retailers can increase their prices by to recoup their increasing costs. These companies might offer a range of different contracts or plans for power prices. But customers will typically be on a company's default plan unless they contact their energy provider and actively choose a different plan. DMO is a cap on how much companies can charge for that basic, automatic plan each year. "When advertising or promoting offer pricing, retailers must show the price of their offer in comparison to the DMO/reference price," the AER says. "This assists customers when comparing the price of different offers" The regulator officially announced the 2025-26 DMO yesterday, reigniting conversations about power prices and the rising cost of living. Does this apply to all states? No. While the AER sounds like it should be a national body, it only covers two-and-a-bit states: New South Wales New South Wales South Australia South Australia South-east Queensland "The DMO price does not apply in the ACT, Northern Territory, regional Queensland, Tasmania, Victoria or Western Australia because maximum standing offer prices in those regions are set by or under a law of a state or territory," the AER says. How much will my power bills go up by? That depends on which state you're in, which power company you go with and what plan you're on. So we can't give a definitive answer on that — but, by looking at the DMO figures, we can give you a general idea for the three states covered by the AER. Let's break it down state-by-state: Price changes will depend on where you live. That's because there's a cap for each distribution network, which is the system of power poles and wires that connect your place with power. Distribution networks are locationally specific, so you can't choose what distributor connects your place to power. Distributors are different to retailers, who just sell you power. There are three electricity distributors operating in the state: Most of regional NSW is on the Essential Energy network, which covers about 95 per cent of the state. AusGrid's area spans across Sydney, the Central Coast and Hunter regions. And Endeavour Energy Sydney's Greater West, the Blue Mountains, Southern Highlands and the Illawarra, and the South Coast. Residential customers without a controlled load*: Ausgrid distribution region: Increase by $155 Increase by $155 Endeavour Energy distribution region: Increase by $188 Increase by $188 Essential Energy distribution region: Increase by $228 Residential customers with controlled load*: Ausgrid distribution region: Increase by $208 Increase by $208 Endeavour Energy distribution region: Increase by $271 Increase by $271 Essential Energy distribution region: Increase by $280 * An example of a controlled load is metering for a specific device that can use off-peak power, like underfloor heating or off-peak hot water South Australia Residential customers without a controlled load*: Increase by $71 Increase by $71 Residential customers with controlled load*: Increase by $64 * An example of a controlled load is metering for a specific device that can use off-peak power, like underfloor heating or off-peak hot water South-east Queensland Residential customers without a controlled load*: Increase by $77 Increase by $77 Residential customers with controlled load*: Increase by $11 * An example of a controlled load is metering for a specific device that can use off-peak power, like underfloor heating or off-peak hot water When will these prices kick in? The DMO prices don't come into affect until the new financial year — so not until July 1. What about the rest of the country? Caps in the ACT are set by theIndependent Competition and Regulatory Commission. In a report also published on Monday, the commission estimated how much extra certain households would pay. Here's how much more the commission reckons people will pay: Small household: Annual increase of $125 Annual increase of $125 Average household: Annual increase of $214 Annual increase of $214 Large family household: Annual increase of $247 Northern Territory The Northern Territory's version of the AER is the Electricity Pricing Order. It sets regulated prices for retail customers consuming less than 750 MWh of electricity each year. This figure is generally the territory's treasurer, but you can find out more about it from the Utilities Commission of the Northern Territory. The commission's website only features the order currently in place, so it's unclear what changes people in the Northern Territory can expect to see on their bills yet. Tasmania Tasmania's version of the DMO is generally referred to as a standing offer. And this is set by the Office of the Tasmanian Economic Regulator. Residential bills for average customers would increase by about $49 per year for 2025-26, the regulator said earlier this month. At the moment, Aurora Energy is the only retailer required to offer standard retail contracts. "These regulated prices provide a safety net for small customers," the regulator said in its final report. "Standing offer prices are particularly important in Tasmania, with approximately 91 per cent of all Tasmanian small customers on a regulated tariff with Aurora Energy as at 31 December 2024." The rest of Queensland While the south-east corner of Queensland is covered by the AER, the rest of the sunshine state is covered by the The Queensland Competition Authority QCA. The CQA's final determination isn't out yet, but we have looked at its draft determination published in March. At the time, it said typical customers on the main residential tariff (tariff 11) could expect to pay about an extra $100annually in the coming financial year. Victoria Victoria's energy regulator the Essential Services Commission (ESC) has a similar cap, called the Victorian Default Offer. It was also published on Monday. The ESC said the statewide annual average increase would be $20. However, here's a breakdown according to the five distribution zones: AusNet: Increase by $6 Increase by $6 CitiPower: Increase by $90 Increase by $90 Jemena: Decrease by $26 Decrease by $26 Powercor: Increase by $4 Increase by $4 United Energy: Increase by $25 Western Australia The West Australian government determines household prices each year when handing down the state budget. This year, that won't happen until June 19. How can I get a better deal? For people in areas with multiple power companies, the general advice is to see what prices other companies are offering. If you find a price that's cheaper than what you're paying, ask the company you're currently with if they'll match this price. Then consider whether you'll stay with the company you're already with, or go with another company. But not everyone can choose their energy providers —here's more from ABC's climate reporting team on that: Posted 11m ago 11 minutes ago Tue 27 May 2025 at 2:32am
News.com.au
5 days ago
- Business
- News.com.au
Energy price increases from July 1
New South Wales households are set to experience power price increases of up to 9.1 per cent from July 1. Queensland prices are expected to inflate by four per cent, three per cent in South Australia and up one per cent in Victoria. The Australian Energy Regulator is attributing the higher rates to a rise in wholesale energy prices. There are fears a failure to hit the 82 per cent renewable target by 2030 could contribute to annual price hikes.
RNZ News
09-05-2025
- Business
- RNZ News
Malborough homeowner's daily power charges jumps 600%
One Malborough Sounds property is facing a particularly steep rise in its power prices - with a 600 percent increase in one aspect of its power bill. The factors driving this increase are quite specific but also reflect some of the other forces at play when it comes to our electricity costs at the moment. Money Correspondent Susan Edmunds spoke to Lisa Owen. To embed this content on your own webpage, cut and paste the following: See terms of use.
Bloomberg
07-05-2025
- Business
- Bloomberg
German Power Hits Year's Biggest Gap Over France on Wind Lull
The spread between power prices in Europe's two biggest electricity markets climbed to the highest so far this year amid scant wind generation in Germany. German day-ahead power for Thursday rose 4.3%, pushing the premium over its French counterpart to the widest since December. The growing disparity highlights the ongoing volatility gripping Germany's energy system, which is increasingly reliant on renewables — sources that are dependent on weather.
