- 1 Electricity Prices Will Rise By Up to 25 Percent
- 2 How Can I Lower My Energy Bill To Prepare for the Price Hike?
- 3 What States Will Be Affected?
- 4 Are There Rebates to Help Offset the Increased Costs?
- 5 Will Embedded Networks Be Affected By the Price Hike?
- 6 Other Reads You Might Like
Electricity Prices Will Rise By Up to 25 Percent
Australians are facing more cost-of-living pressures with electricity prices set to increase by up to 25 percent from July 1, 2023 after the Australian Energy Regulator (AER) finalised a decision on the default market offer.
From July 1, residential customers on standard retail electricity plans will see price increases of 20.8 percent to 23.9 percent without controlled load and from 19.6 percent to 24.9 percent with controlled load – depending on the region. Small businesses will also see price rises of 14.7 percent to 28.9 percent – depending on the region.
With wholesale energy costs continuing to be the predominant driver of increased retail electricity prices, households and businesses throughout Australia could see substantial increases in their power bills. The change could impact hundreds of thousands of homes and businesses on the default offer, which is a benchmark price designed to regulate price rises for household and business customers.
How Can I Lower My Energy Bill To Prepare for the Price Hike?
If you’re already suffering from high energy bills, the upcoming price hike could significantly impact your finances. One of the easiest ways to lower your bill is to compare energy plans and switch to a better rate. And, now’s the time to get yourself a better rate before the price hike is in full effect.
Most retailers offer a benefit period that ends after a specified period (i.e. 12 months). Once this promotional period ends, you may be paying more than necessary. At Electricity Monster, we can help you potentially lower your bill by comparing rates and finding you a fair deal from our network of partnered retailers. Not only can we help you get the best deal we have available, but by switching through Electricity Monster, you’ll also get a $50 Voucher! Give us a call today and see how we can help.
What States Will Be Affected?
Electricity rates will affect those that live in New South Wales, South-East Queensland, South Australia, and Victoria. The sections below break down the increases for each affected state.
New South Wales
In New South Wales, residential customers without controlled load will see price increases of 20.8% to 21.4% depending on their network distribution region. Customers with controlled load will see price increases of 19.6% to 24.9%, according to the AER.
Residential customers in South-East Queensland will see increases of around 21.5% for customers without controlled load and 20.5% for customers with controlled load, according to the AER.
South Australia residential customers without controlled load will experience price rises of around 23.9%. Customers with controlled load will see increases of around 22.5%, according to the AER.
According to the Essential Services Commission in Victoria (ESC), benchmark retail prices will increase by 25 percent, which calculates out to be a $350-per-year increase for the average household.
Are There Rebates to Help Offset the Increased Costs?
Eligible households can take advantage of the $500 Energy Relief Payment, which offers cost-of-living relief for homeowners and small businesses.
This rebate will be automatically deducted from the eligible customers’ energy bills over the next financial year. There is no actual application form to fill out.
To learn more about this rebate, check out our post on the $500 Energy Relief Payment.
Will Embedded Networks Be Affected By the Price Hike?
Embedded networks can be defined as residents that get their electricity from their landlord in an apartment building, retirement home, or village. A resident that receives power bills but does not have a direct relationship with the retailer may not fall under the embedded network category.
According to the AER, the DMO is not applicable to tariffs charged in embedded networks. However, in scenarios where an embedded network customer buys their energy from an exempt seller, they do have their prices indirectly capped at the DMO. This is because the exempt seller cannot charge more than the standing offer from the local area provider.
Other Reads You Might Like
The Best and Cheapest Electricity Deals New South Wales Has On Offer
The Best and Cheapest Electricity Deals Victoria has on offer (and how you can get them!)
Best Electricity Deals Queensland (Cheapest Providers)
The Best and Cheapest Electricity Deals South Australia Has On Offer
- The information contained in this website is for general information purposes only. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose.
- Any reliance you place on the information provided in this article is therefore strictly at your own risk. You need to make your own enquiries to determine if the information or products are appropriate for your intended use.
- In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
- Electricity Monster does not make any guarantees, explicitly or implicitly, over the accuracy of the materials provided.
- We do not guarantee that the information provided applies to every household or every business in Australia.
- We encourage readers to verify the data provided here, with a third-party, independent source before coming to any conclusions.
- The information provided here is accurate to the best of our knowledge. The information represented are pulled from the Default Market Offer Prices 2023-24 by the Australian Energy Regulator (AER).
Get a $50* Coles or Woolies Voucher
When You Call & Switch Today
- Compare Providers
- 100% Free Service
- Brokered Over 150,000 Deals
Benjamin Tom covers the retail energy market, with a focus on electricity, solar, and Internet. His interests include helping people navigate the complexities of the energy market while saving money on their power bills.