Electricity Prices Set to Rise By Up to 25 Percent in July
The pending price hike will impact thousands of households this July
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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.
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Electricity rates will affect those who live in New South Wales, South-East Queensland, South Australia, and Victoria.
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One of the easiest ways to lower your bill is to compare energy plans and switch to a better rate.
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Eligible households can take advantage of the $500 Energy Relief Payment, which offers cost-of-living relief for homeowners and small businesses.
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.
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.
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.
South-East Queensland
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
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.
Victoria
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.
3Are 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.
4Will 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.
Looking To Compare More?
If you want to start comparing rates to find a plan suitable for your lifestyle, give us a call at 1300 232 848. We specialise in comparing rates with our partners so you can enjoy a fair deal without dealing with the hassles that come with the process. Our energy specialists are on standby ready to help.
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Benjamin TomBenjamin is a utility specialist passionate about creating informative content about the energy, internet, and solar markets. With extensive experience in the telecommunications industry, Benjamin drives our unique blog posts, articles, and reviews. He is focused on breaking down the technical jargon so our readers can better understand the telco market and industry. Whether he is comparing the latest internet deals or creating unique guides, Benjamin takes great pride in creating helpful, easy-to-read content.
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