Electricity Prices Set to Rise By Up to 25 Percent in July

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.

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.

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.

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.

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.