Avoid the July 1 energy price hike!
Each year energy providers review their pricing and based on factors like wholesale costs, network charges and retail margins, they decide if they will leave prices as is or hike them up. And as you can imagine more often than not, consumers see their energy bills rise.
What this means is, if you’re living in the deregulated markets of New South Wales, Queensland, ACT or South Australia you’re likely to see your energy bills increase from July 1 (for Victorians your price review will be in January).
How much will energy prices rise by?
All indicators are pointing towards significant increases this July 1. Wholesale electricity prices have increased by as much as 50% and since this makes up 45% of a household energy bill, the cost is likely to be passed onto customers. Some experts are even predicting this could slap households with a price increase of up to $400 over a year.
Another factor that could affect energy prices was a recent ruling against the Australian Energy Regulator. While the AER claimed that NSW distributors were less efficient than their interstate counterparts, the Federal Court found they had made regulatory errors when setting network revenue. What this means is, distribution networks (like Ausgrid, Endeavour Energy and Essential Energy) will have the freedom to increase prices, which may fall onto the shoulders of customers come July.
How can I avoid the energy price hike?
While there’s not much you can do about your provider increasing rates, you can ensure you’re on the most competitive plan for your area. For instance, at the time of writing Mozo data shows the difference between the cheapest and most expensive plans is, on average, $810 a year for a three person household.
The good news is all you need to do to see if there is a more competitive energy plan out there, is plug your details into Mozo’s energy comparison tool and in as little as 2 minutes our tool will show you some of the best deals currently for your postcode.
