01.Electricity prices heating up
Australian households will be hit with higher electricity bills from July 1 as prices across the country are set to soar.
The price increase will affect Australians living in all states, for example:
- NSW prices will increase by an average of 18%
- ACT prices will increase by an average of 17.74%
- NT prices will increase by an average 9.6%
- SA prices will increase by an average of 18%
- VIC prices will increase by up to 15% in some areas
- WA’s largest electricity retailer, Synergy, expects its customers will pay an extra 12.63%
- TAS prices will increase by 10.56% for all households, and
- Research by Queensland University shows that QLD's most widely used residential tariff will increase by 10.4%
How to beat the price increases
The first action CHOICE recommends all consumers take is to shop around for the very best deal. For advice of how to compare and change energy retailers you can use our energy switching plan.
However, changing you retailers alone won’t help you beat the price rises. Reducing your energy usage is the best way to reduce your energy bill. You can use the carbon price calculator for tips on how to save. You can also go behind the scenes at our CHOICE labs for expert advice from our testers on appliance energy savings.
Finally, CHOICE believes that part of the solution is to reform the energy market so that network businesses, the owners of the ever-expanding poles and wires, face more scrutiny in the costs they pass on to consumers and are forced to investigate other options to defer or displace network costs.
Why are prices going up?
The carbon price has definitely had an impact of electricity prices however the regulators in all states cited a number of other issues.
“Around half of the increase in NSW electricity prices from 1 July is because of the continuing rise in costs … from the electricity network – or the poles and wires”, according to Dr Boxall of NSW’s Independent Pricing and Regulatory Tribunal.
“The other half is due to increasing wholesale electricity costs faced by the retailers resulting from the introduction of a carbon price”.
Meanwhile in SA regulators specified that the carbon price would account for just over a quarter of the total price increase. In Queensland, however, the main consumer electricity tariff is pegged entirely to the carbon price.
The electricity price rises are largely consistent with those estimated in the independent carbon price cost-of-living research conducted by the CSIRO and AECOM, commissioned by the Climate Institute in partnership with CHOICE and ACOSS.
Make your voice heard
Become a CHOICE campaign supporter and you can help us create reform in the energy market.
NOTE: CHOICE has no affiliation with the One Big Electricity Switch currently being run by One Big Switch.