Millions of Aussies already doing it tough to be hit by a massive electricity bill price hike from today – here’s how much extra your state is going to be stung
- Major electricity retailer has upped prices
- The changes come into effect from Wednesday
- It will add hundreds of dollars to yearly bills
Millions of Australian households have been slapped with an electricity price hike, on top nine consecutive interest rate rises, after a major retailer upped its prices.
Energy Australia, which has 2.4million electricity and gas customers, increased its variable contracts by 14.1 per cent on Wednesday, adding hundreds of dollars to yearly bills.
Contracts are usually reviewed at the beginning of the new financial year on July 1, in line with government reviews of industry prices, but competitor Origin made an increase in January and Energy Australia has followed suit.
It is likely AGL, along with other smaller second tier retailers, will also raise their rates but will wait until July.
The yearly cost increase will vary between states and territories and also between residential or business customer.
The price rise will affect millions of Australian households already struggling with increased interest rates, petrol and grocery prices (stock image)
Energy Australia residential customers in Queensland will be looking at an extra $301 per year, in NSW another $276, in South Australia another $252 and in the ACT another $221.
Victoria, Western Australia and the Northern Territory customers are not affected at this stage.
Comparison website Compare the Market’s general manager of energy, Anthony Fleming, said that it was more expensive to generate electricity because of plant outages, worker shortages, inflation and global supply chain issues.
‘We know that the Federal Government’s budget predicted electricity prices would soar by 30% in the 2023-24 financial year, which could see hundreds added to electricity bills in the next year,’ Mr Fleming said.
‘However, we also know that the government implemented a price cap on wholesale gas prices last month, which could help reduce costs at plants that still use gas to generate electricity.
‘Experts from the Australian Energy Regulator anticipate that 2023 electricity prices will be lower than originally expected due to the cap, and decrease into 2024.’
Australians impacted by any electricity or gas price increases will be contacted by their retailer directly about how much their prices will increase and when new pricing will come into effect.
The electricity increase comes just weeks after all three tier 1 gas retailers – Origin Energy, AGL and Energy Australia – raised the price of gas by between 5 and 26 per cent.
There is one upside, with electricity retailers required to inform customers if they can offer a cheaper price plan.
Gas prices were increased by Origin, AGL, and Energy Australia just a few weeks ago by between 5 and 26 per cent
That change is already in effect in Victoria and will be from September 30 in Queensland, NSW, the ACT, SA and Tasmania.
‘In some cases, the same retailer has offered both the most expensive and most affordable plan in some locations,’ Mr Fleming said.
‘Customers don’t always know what to look for on their bills and this change will make it easier to know if you’re needlessly paying more.’
