The typical household energy bill is tipped to rise this winter as events create a “perfect storm” skyrocketing wholesale electricity prices, industry data analysts have warned as Australia prepares for an energy bill price rise.
During the first quarter fossil fuel prices coupled with power plant outages have caused the cost of energy to grow to twice what they were during the same period a year ago. Dr Dylan McConnell reported these figures during an energy analysis at the University of Melbourne.
“Prices for the next quarter are [also] looking pretty nasty,”
What has been reported shows that electricity prices are between 64% (SA) and 284% (QLD) higher in the first quarter than the previous year. The staggering results show energy prices rose to over and above $100 per megawatt hour (MWh) during this time.
“Prices for the next quarter are [also] looking pretty nasty,” McConnell said.
Why are power bills rising?
Power bills are set to rise because of a few important factors.
Firstly, during the widespread flooding across Queensland, there was a spike in demand for electricity in February.
Secondly, this turbulent weather halted supply chains of fossil fuels from being delivered to power stations across NSW. Adding to this, some power generation plants in Queensland were not in operation.
Matters were made worse by gas and coal global pricing reaching alarming highs. This directly affected the cost to generate electricity here in Australia.
The war in the Ukraine has been a key factor in the reason for the spike in the cost of fossil fuels.
These factors combined mean that the typical homeowner in Australia will end up paying much higher electricity bills as a result.
“Everything that could go wrong to put upwards pressure on wholesale prices has gone wrong.” said Director Tony Wood from the Grattan Institute Energy Program. He adds “Perfect storm is a good term … it’s just about unprecedented…The forward prices don’t suggest it gets better any time soon”
When could power bills rise?
Prices have already begun to rise however consumers could see a significant rise at any moment. Analysis shows that there will be a noticeable impact on household bills as soon as Australia enters the 2022 winter.
The rising price of fossil fuels is likely to put stress on the wholesale cost to the Energy Retailer. As such Energy Retailers will have no choice but to forward on the rising prices to energy consumers and homeowners.
How can homeowners protect themselves from the energy price rise?
One way to make a significant impact on the amount of energy bills a homeowner will soon be paying is the introduction of a solar system subsidised from the Federal Government.
As prices rise across the country, those with a solar system on their home or business will be less affected. This is due to generating their own electricity from the solar panels on their roof.
The Federal Government is subsidising eligible homeowners with up to $7000 off their system. This then reduces the overall cost of the solar system for the typical homeowner.
The average system size has risen from 6.6kW to 8.2kW. This is partly due to homeowners requiring more power for extra home appliances. Plus with the introduction of Electric Vehicles such as the Tesla Model 3 on the roads, owners of ‘EV’s’ require even more electricity to charge them.
The ‘Pay As You Save’ Solar solution
Homeowners that already have solar installed will be partially protected from the energy price rise, and even more so if they have a battery. In this way, a homeowner has access to free energy from the sun, day and night.
Unlucky homeowners who do not have solar could be the most affected. However since SunEnergy pioneered the ‘Pay As You Save’ program, this has helped thousands of homeowners over the years get solar with almost no upfront cost.
The ‘PAYS’ program allows a homeowner to get solar for no more than they currently pay on electricity bills. This style of instalment plan takes what a homeowner would usually spend on rising energy bills and redirects it to pay off the solar system.
In a short time, the system is completely paid off which continues to generate free solar energy well into the future.
Who is eligible for the Government Solar Subsidy?
Most homes are suited for a solar system and the Government Solar Subsidy can reduce the cost of getting this installed.
To see whether you are eligible, click the button below and fill out the form or call 1800 786 765
