Millions of Aussies are about to see a huge jump in their electricity bills after a major supplier introduced some truly eye-watering price rises last week.
On 1 March 2023, electricity giant Energy Australia upped the rates of its business and retail electricity plans for customers in NSW (up 12.4 per cent), Queensland (14.1 per cent), South Australia (10.9 per cent) and the ACT (10.2 per cent).
The company blamed the price rises on external economic factors out of its control.
“There have been many impacts to energy globally, including the sustained impact of the war in Ukraine on energy prices, extreme weather conditions and coal supply issues,” says Energy Australia.
“These factors mean it’s costing us more both to generate and purchase wholesale electricity for our customers.”
Anthony Fleming, general manager of energy at Compare the Market, told The New Daily that customers are really starting to feel the effects of the global energy crisis and rising inflation.
“The harsh reality is that it’s costing more to generate the electricity we use to power our homes and businesses,” he said.
“Customers on variable electricity plans with EnergyAustralia will start to feel the pinch of higher prices from 1 March, but we know Origin has already upped prices for some customers and other retailers will be moving this year.”
Not out of the woods yet
To make matters worse, these price increases are ‘out-of-cycle’ price increases, meaning they’re happening outside the Australian Energy Regulator’s usual Default Market Offer (DMO) periods.
These changes usually come into effect on 1 January and 1 July each year, so customers in some affected states may see another price hike mid-year.
The DMO applies only to customers in NSW, Queensland and South Australia. Other states, such as Victoria, have their own DMO for residents. It acts as a kind of price cap for consumers who don’t negotiate with their energy retailer.
The first draft of the next DMO is due in May, with the changes set to come into effect in July. It’s not yet clear how much the next DMO will increase by, but the last one saw a 1.7 per cent increase tacked on to bills in those states.
Despite Australians crying out for cost-of-living relief, energy retailers have collectively urged the regulator not to “undercook” the next DMO for fears it could lead to liquidity issues for them.
What does a jump in electricity prices mean for you? Do you have solar or are you considering solar? Let us know in the comments section below.
Also read: 10 off-peak energy tips to cut your electricity bills
We have taken the same approach with cutting down on electricity costs as we did on paying off our mortgage many years ago, we made it a satisfying pursuit, looking at every small opportunity to make a difference and it does. Our bill shows our quite large house has the equivalent usage of a single person home. We take every opportunity to save power such as all windows open till late at night and reopen early in the mornings to catch the cool air. We’re in the subtropics but used aircon for about three hours this summer, DC fans and LED lights in all living areas are just great with low running costs . We measure all water before boiling and put any rare surplus in a Thermos. The garage fridge is switched off. We have solar water heating, use our own wood for winter heating but we don’t intend installing solar power as it wouldn’t pay as much of our usage is after the sun goes down. It’s a case of every little bit adds to the savings.
The main reasons for energy increases are corporate profiteering, incompetent government and the net zero BS! All else is propaganda.
We are in the same boat as Cosmo. We turn lights and appliances off when not needed, use LED globes, computer is a laptop and charged only when needed. Aircon has been used twice this last summer, otherwise open windows and ceiling fans, new efficient fridge and chest freezer, woodier for heating. Bill is on average is under $45 each month.
Many years ago, living in a flat in Melbourne, we reduced our electricity bill somewhat by switching the HWS off as we left for work and turning it back on when returning home. Simple.