Australians facing massive energy price hikes need only look to Britain to see the power pain coming their way.
Last winter, British families were forced to choose between heating their homes or putting food on the table, with businesses across the UK closing their doors for good after being hit with bills in excess of £55,000 (AUD$100,000).
And in Australia, the energy regulator has signaled price increases of between 19 and 30 percent in at least five states.
Electricity and gas prices in the UK rose by 54 per cent and 99 per cent respectively in just 12 months. Numerous stories have emerged of households forgoing heating and using portable stoves to save on electricity costs.
One family even resorted to using headlamps in the house at night to keep the lights from coming on.
Chavdar Todorov, 53, said he was asked to make the drastic changes when his electricity bill arrived and more than doubled in price to £320 (AUD$580) a month.
The family limited the heating of their home to just once a week. At all other times they tried to keep warm by wrapping themselves in coats and blankets.
One family even resorted to using headlamps in the house at night to keep the lights from coming on
The headlamps, which turn on and respond to movement, are used at night to move around in the dark
Meanwhile, business owners said they were stuck with “ridiculous” price hikes on their energy contracts as winter approached.
A small cafe owner told MailOnline her business was about to close after annual electricity bills rose from £10,000 to £55,000.
And on social media, savvy consumers shared the tricks they picked up out of desperation to stay afloat.
Some recommended showering in community gyms or the office, while others suggested charging electronic devices at work or in public areas to reduce costs.
Budget meals were shared at record rates to lower grocery bills, while pubs even reduced opening hours to avoid financial ruin.
Many said they avoided using washing machines and dishwashers at certain hours of the day, while others chose not to prepare meals that required an oven.
Due to the crisis in the UK, some councils have skipped the Christmas light festivities over the winter.
Australia warned to brace for rising energy prices and gas shortages
For Australians struggling with the cost of living, the penny pinching strategies implemented during the UK’s winter of discontent could soon be needed closer to home.
On Thursday, the Australian Energy Market Operator said Australians could face gas shortages this winter and beyond amid a sharp drop in gas production.
AEMO CEO Daniel Westerman said more production was needed to avoid shortages during winter peaks and beyond.
Former Prime Minister Malcolm Turnbull told ABC Radio that “a whole range of things need to happen” to address the problem.
“They need to get more gas, we need to get better at insulating homes,” he said.
“You can’t afford gas being unaffordable and you certainly can’t afford people not being able to heat their homes in the winter.”
This chart illustrates how energy prices will increase in a number of Australian states with the percentage increase and the extra amount it will add to an average energy bill in a year
Australian households in four states will also face steep electricity price increases in the coming months as the country’s energy regulator rises to 31 percent.
Victorians will see their bills rise by nearly a third, while NSW, Queensland and South Australia will also see steep increases.
Australia’s energy regulator on Wednesday released its draft standard market offering – essentially the maximum price that energy retailers can charge residential and small business customers – for the 2023/24 financial year.
Victoria’s Essential Services Commission did the same for that state, signaling a whopping 30 percent increase in electricity prices for households and 31 percent for small businesses.
This would increase a typical household bill from $1,403 to $1,829 per year, while small businesses could expect an increase from $5,620 to about $7,358.
According to the Commission, approximately 400,000 Victorian households and 55,000 small business customers use that state’s standard offerings.
For NSW, Queensland and South Australia, the Australian energy regulator signaled price increases of between 19.5 and 23.7 percent.
Some recommended showering in community gyms or the office
Standard offerings for residential customers in NSW were expected to grow 20.9 percent and 23.7 percent for small businesses.
House prices in Queensland are expected to rise by almost 20 per cent in the south east of the state, while house prices in South Australia are set to rise by 22 per cent.
It estimated that small business customers could face price increases ranging from 14.7 percent to 25.4 cents, depending on their region and carrier.
The regulator said the increases would increase a household’s average bill between $300 and $564 a year.
For the hardest hit areas of NSW, households could see their utility bills rise by up to $463, while small businesses could see their bills rise by up to $858.
This comes despite a pledge from treasurer Matt Kean to cut energy prices by $130 for households and $430 for businesses this year.
On Tuesday, Mr Kean instead introduced a new pledge for NSW voters if the Liberal Party were to be re-elected next week.
Another tip suggested by some Brits was charging electronic devices at work or in public areas to cut costs
He said, “In the short term, we’re delivering $250 off household utility bills as they look for a better deal.”
Adrian Merrick, CEO of Victorian energy supplier Energy Locals, said the power surges should have been avoidable.
Mr Merrick said that while fossil fuels ‘are not the future’, they are vital in the meantime until renewables can shoulder the burden.
“In the short term we need gas and in the short term, as unpopular as it is for some people, we also need coal,” he said.
Voters were promised a $275 energy price cut by 2025 by Labor during the federal election.
Two years after that deadline, costs are skyrocketing and putting even more pressure on families and business owners.
When asked about Labour’s election pledge to cut energy bills on Tuesday, federal energy minister Chris Bowen promised not to give up on the price cut.
‘I don’t intend to introduce more sustainable energy, because that is the cheapest form of energy. We have indicated 2025… it is now 2023. We still have a lot of work to do,” he said.
We will continue our efforts to keep energy prices as low as possible. We’re not going to give up on that ambition.’
But Mr Bowen was unable to provide a clear path forward as to when Australians could expect that relief on their bills.
“We will always be open with the Australian people. There is tremendous international pressure that is not going to go away,” he said.
“I wish and I hope that Ukraine can triumph very soon and that is of course our dear friends in Ukraine, that is very important to them. It is very important for people who care about political freedom wherever they are, and it would be very good if world energy markets returned to normal. I can’t tell you when that will happen.
“It is a very unstable and unpredictable environment in Europe and it will be for some time to come. But what we’re going to do is what we’ve done so far. Be open with people about the challenges and work very hard, very carefully to intervene to reduce that pressure and that impact on Australian families.”