Millions to See Power Bills Rise from July 1
Millions of Australian households will soon face higher electricity bills. Major retailers AGL and Origin Energy have confirmed rate increases set to take effect from July 1. About eight million customers across New South Wales, Victoria, South Australia, and Queensland will experience these price changes.
AGL will raise electricity prices by 13.5 per cent in New South Wales, 7.8 per cent in South Australia, 7.5 per cent in Queensland, and 6.8 per cent in Victoria. NSW customers face an average annual increase of $267, with some bills rising by as much as $300 for medium usage households. In South Australia, AGL customers will see bills increase by $200 on average. Queenslanders will face a $155 hike, while Victorians will pay $110 more.
Electricity bills to rise from July 1
Origin Prices Also Set to Climb
Origin Energy will also raise electricity rates. NSW customers will face an average 9.1 per cent increase, South Australians 5.5 per cent, and Queenslanders between 3 to 4 per cent. Victorian electricity charges remain undecided, but gas prices will rise. The average household in Victoria will pay an extra $85 annually for gas. Customers will receive official notifications of these changes through letters and emails in the coming weeks.
Default Offer Rise Driving Market Increases
The price hikes follow recent decisions by energy regulators to raise default market offers. These reference prices act as a benchmark for retailers when setting rates for their market offers. Standard energy plans will rise by up to $228 annually due to the updated default prices. About 10 per cent of customers remain on default contracts, but all market plans are influenced by this price point. The increases have been attributed to higher network fees, servicing costs, and wholesale electricity expenses.
Government Extends Energy Relief Measures
The federal government has extended its energy bill relief program. From July 1, eligible households will receive a $75 quarterly payment to help cover electricity expenses. The support will continue until the end of the year.
Households Urged to Compare Electricity Plans
Canstar data insights director Sally Tindall encouraged Australians to review their electricity plans. “The cold hard truth is that electricity price hikes are pretty much inevitable in states such as NSW, Queensland and South Australia this winter after the regulator approved hikes to the reference prices across all networks in these states,” she said. “The exact costs for your daily supply charge and electricity rates are up to each provider, however, unless you’re on an embedded network or in a state where there are limited options, this is one bill you can, and should, take control of.”
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Tindall said consumers should compare their current plan against the reference price. Plans that sit below the reference price generally offer better value. “In Sydney, single rate plans are, on average, 7 per cent lower than the reference price, however, there are plans available that are up to 23 per cent lower than the regulator’s benchmark,” she said. “In Brisbane, the gap is even wider, with the average discount listed at 6 per cent, while the highest is 27 per cent.”
Comparison Tools Available to Assist Shoppers
Australians can use the Australian Energy Regulator’s Energy Made Easy website to compare available plans. Victorians can visit the Victorian Energy Compare site for state-specific comparisons. These tools help identify plans that fall significantly below the benchmark rates.
Energy Costs Have Climbed Steadily Since 2023
Electricity prices have risen steadily over the past two years. Since June 2023, the average annual electricity bill has increased by as much as $360. The current price hikes add to that burden for many households heading into winter. Retailers continue to adjust market offers in response to cost pressures across the national energy market. With higher rates already locked in, households are encouraged to act quickly. Shopping around can help mitigate rising energy bills by switching to more competitive providers.
