Attention NSW residents! Electricity price rise to add over $200 a year to energy bills
A massive electricity price hike in NSW is expected to add hundreds of dollars each year to the average household's power bills. The updated prices are applicable starting July 1.
Last month, major providers Origin Energy and AGL announced they will increase electricity prices by 10% and 11% on average respectively. According to Mozo data, NSW could see more than $200 extra added to the average annual bill of a 3-person household. The exact price rise would of course depend on the household’s energy plan and usage.
The spike in power prices is part of a review cycle where energy providers in NSW, SA, QLD and ACT revise their tariffs every year in July based on things like changes in network, metering, wholesale and green energy costs.
According to Grattan Institute, Energy Fellow David Blowers, increased prices are largely the result of wholesale electricity price increases and gas generation setting the price in the market, reported the SMH.
Another factor contributing to the overall price hike is the increase in network costs. After trying to bring prices down for months, the Australian Energy Regulator approved an interim rise in network charges in line with inflation.
Given the increasing competition in the NSW energy market, and the entry of new and innovative energy providers, experts believe the best way for residents to fight rising costs is by controlling usage and comparing electricity plans to ensure they’re on the cheapest electricity tariff.
"It's clear the NSW electricity market is increasingly competitive, and shopping around to find the best deal pays off," Industry, Resources and Energy Minister Anthony Roberts said in a statement.
NSW residents looking to compare and switch to a cheaper electricity plan can use Mozo’s free award-winning energy comparison tool, which lists updated plans and price details. For easy and effective tips on saving electricity around the home, check out our Energy Saving Hub.