Australian households are bracing for a jolt to their electricity bills, with prices expected to climb by up to 9 percent from July 1st. This unwelcome increase, revealed in the Australian Energy Regulator’s (AER) draft decision on the “default market offer” (DMO), will further squeeze budgets already stretched by the ongoing cost-of-living crisis.
The AER’s decision means that price caps for customers on standard retail plans will be lifted in New South Wales, South-East Queensland, and South Australia. This translates to price hikes ranging from 2.5 percent to a substantial 8.9 percent, varying by region.
For the average household, this translates to an inflation-adjusted annual increase of between $60 and $140, depending on their location. Small businesses will also feel the pinch, with potential price rises of 4.2 percent to 8.2 percent.
Victoria, where the Essential Services Commission sets its own prices, presents a mixed picture. While some zones may see a slight annual decrease of $19, others could face increases of up to $68.
AER Chairwoman Clare Savage acknowledged the difficult timing of the announcement, highlighting the existing financial pressures faced by many Australians. She also noted the recent power outages caused by ex-Tropical Cyclone Alfred in northern New South Wales and South-East Queensland, compounding the challenges faced by those communities.
“We know that cost-of-living pressures are front of mind for many households and small businesses,” Savage said. “This is a very difficult time for many communities…We’ve seen cost pressures across nearly every component of the Default Market Offer (DMO), and we have given careful scrutiny to every element to ensure prices are a reasonable reflection of the costs of a retailer to supply electricity.”
The impending increase in electricity bills will undoubtedly add to the financial strain on Australian households and small businesses, highlighting the need for continued efforts to address the rising cost of living.
Want to take control of your energy costs? Explore our products to reduce your power bills. Click here to learn how you can save!
Call us on 1800 786 765 or contact us to find out more!
