Electricity Bill Hike By AU$200 From July 1: What It Means For Your Wallet

Australian households are expected to pay up to AU$200 more for their electricity bills starting from July 1, according to a new analysis by Canstar.

The cost of electricity is set to increase for many households, with the rise varying depending on where people live. In some areas, the increase could be between 2.5% and 8%, while small business customers may see increases ranging from 4.2% to 8.2%, reports News.com.

Residents in New South Wales (NSW), south-east Queensland, and South Australia will face higher bills, with annual increases ranging from AU$114 to AU$200.

However, residents in Victoria will be spared from significant increases.

Under the draft plan by the Essential Services Commission (ESC), which sets default offers for Victoria, customers may experience either a decrease of AU$19 or an increase of up to AU$68 per year on their household bills.

Canstar Blue's data insights director, Sally Tindall, described the price hikes as a "sucker punch," noting that this comes at a difficult time during the ongoing cost-of-living crisis.

The Australian Energy Regulator (AER) has released its latest draft determination on the default market offer (DMO), which sets the maximum price households in New South Wales, South Australia, and south-east Queensland will pay for electricity.

AER chair, Clare Savage, acknowledged that it is still a challenging time for energy consumers, particularly for those affected by Tropical Cyclone Alfred.

While the prices are rising, they reflect the maximum that electricity retailers can charge customers on default contracts, also known as "standing offers." Though only a small percentage of customers use standing offers, many retailers offer competitive market offers, which may also be affected by the price changes.

Tindall warned that prices could rise even further after the consultation phase. Over the past six years, 67% of final prices have exceeded the proposed draft price.

Regulators will consult on the prices before finalizing them, with decisions for Victoria set for May 24 and for NSW, south-east Queensland, and South Australia on May 26.

New prices will take effect on July 1, 2025, 9News reports.

Price hike in different regions

New South Wales: Customers in NSW on standard plans could see the largest increases. For example, Ausgrid customers may pay up to AU$1989 per year, which is an increase of AU$159.

Endeavour Energy customers may face an AU$174 increase, bringing their annual bill to AU$2357. Essential Energy customers may see an AU$200 increase, raising their bills to AU$2713.

Queensland: South-east Queenslanders on standard plans could face an increase of AU$119, raising their Energex bills from AU$2066 to AU$2185.

South Australia: Households in South Australia will see the smallest increase, but it will still result in an AU$114 rise, bringing the annual energy bill to AU$2344.

Victoria: Victorians will be the least impacted by the price hikes, with some customers even seeing a decrease. For example, CitiPower customers could pay an additional AU$68, bringing their annual bill to AU$1456.

Powercor customers could see an increase of AU$19, bringing their bills to AU$1680. United Energy and Jemena customers will experience small increases of AU$15 and AU$16, respectively.

However, AusNet Services customers may enjoy a slight decrease of about 1%, reducing their bills by AU$19 to AU$1883.