Energy prices going up: How households in some states will suffer
Power prices are fast becoming the central topic of the moment, with Aussie households in deregulated states expected to see electricity charges surge near the 20% mark or higher when July hits the calendar.
Customers residing in New South Wales, Queensland, South Australia and the Australian Capital Territory will likely get slugged with higher energy rates due to several reasons including increasing wholesale prices.
The Independent Competition and Regulatory Commission estimated that from 2016-17 to 2017-18, energy retailers in NSW and ACT will see wholesale electricity prices rise by up to 50%.
And according to ActewAGL, the cost of gas and electricity for retailers in Australia has already skyrocketed over the last 12 months by doubling in price.
Rather than absorb this cost, energy providers are likely to pass this on to customers from July 1. See below for details of the price increases expected for these states.
Snapshot of states affected
With EnergyAustralia saying it will raise NSW electricity rates by up to 19.6% in July, it’s highly likely that Aussie households in the state will have to cough up more than a few extra dollars to their energy providers over the coming months.
Major supplier, EnergyAustralia has said it will keep any upcoming price hikes for customers within the government’s growth cap at 7.1% between this year and next. So if you’re a Queenslander, rest assured that energy prices won’t soar to that dreaded 20% mark (or at least for the 2017/2018 year)!
SA is known for having some of the highest electricity bills in the country and unfortunately from July 1 prices are set to climb even further with rate rises as high as 19.6%. But there is something you can do about it (hint: switch!).
Aussies in the ACT are also expected to feel the pinch when it comes to paying their energy bills, with the cost of electricity increasing by up to 18.95% on July 1. Despite the bad news, Canberrans will still be paying far less than other states such as NSW.
Tips to avoid the energy hikes
1. Switch energy providers. With only a couple of weeks left until July comes along, review your existing energy plan now. If you can find a cheaper deal on our energy comparison hub, it’s time to pull the plug.
2. Use less energy. Don’t let the winter months churn through your usage, instead look into ways to stay warm without having the heater on full blast. For instance, you could take the opportunity to upgrade your appliances or seal drafts in your home.
3. Insulate your property. If your home isn’t insulated then you’ll have trouble sustaining a cosy temperature. Fork out a little for the long-term investment and you’ll save a pretty penny on energy bills.