Over 215,000 Australians struggling to pay their electricity bills are set to face further challenges as the country’s largest electricity networks and providers increase prices by as much as 13.5% starting today. According to a report from the Australian Energy Regulator, the incidence of individuals in debt rose by 7% in the first quarter of the year compared to the last quarter, and by 5% year-on-year. The average debt has also increased to $1,415, reflecting a $20 rise from the previous quarter and a $309 increase from a year ago.
More than four million households will experience this price hike, which could translate to an additional $200 or more annually for the average family. Notably, the annual electricity cost for households on default plans in New South Wales, south-east Queensland, and South Australia is expected to rise by up to $228 due to adjustments in the default market price, as detailed by the Australian Electricity Regulator earlier this year.
Origin Energy is increasing its market plan prices by 9.1% in New South Wales, 5.5% in South Australia, and 3.1% in south-east Queensland. Meanwhile, AGL is implementing even more substantial increases of 13.5% in New South Wales, 7.8% in South Australia, and 7.5% in south-east Queensland. Similar increases for customers in Victoria and the Australian Capital Territory will take effect on August 1 for Origin, and in September for EnergyAustralia across various states.
Despite the financial strain, households may experience some relief through the federal government’s ongoing energy bill rebate scheme, which offers $75 per quarter and has been extended until the end of the year. Additionally, Canstar Blue has indicated that consumers could achieve further savings—between $144 and $390 annually—by switching from an average-priced plan to a lower-cost alternative within their energy networks.
Sally Tindall, the data insights director at Canstar Blue, emphasises that while the electricity price increases are challenging, there is potential for tangible savings through provider switching, especially for those who haven’t changed providers in over a year. The savings could exceed $300, depending on the consumer’s location, adding to the relief provided by the government’s financial support measures.