Massive energy bill shock with rising electricity prices for thousands of Australians – here’s how much more you’ll be paying
- Electricity prices rise by 24 percent
- NSW, QLD and South Australia are affected
Energy prices will skyrocket by up to 24 percent for hundreds of thousands of Australians under a new electricity price ceiling set by the energy regulator.
Australia’s energy regulator revealed that prices would rise between 21 and 24 percent from July after releasing its final determination on Thursday.
The revised increase is higher than the draft offer of 20 to 22 percent increase that the regulator put forward in March.
The changes will affect around 600,000 residents in New South Wales, South East Queensland and South Australia.
As of July 1, residential customers will see price increases ranging from 19.6 to 24.9 percent, depending on their region.
Small business customers will experience increases from 14.7 percent to 28.9 percent.
Australia’s energy regulator has confirmed electricity prices will rise from July (stock image)
About nine percent of customers are charged the standard market rate, which effectively acts as a safety net to ensure that domestic users are not charged obscene amounts.
Most customers have lower, discounted rates, but the standard offering also serves as a benchmark for broader pricing.
The energy regulator said high wholesale energy costs continued to push up retail electricity prices.
Clare Savage, chair of the Australian energy regulator, said the agency took into account the cost-of-living pressures faced by households and businesses, as well as the need for retailers to recoup their costs.
“We know households and small businesses continue to be under pressure with the cost of living on many fronts, which is why it’s important that the (standard offering) provides a safety net for those who may not have shopped around for a better power deal,” she said.
“No one wants to see rising prices, and we recognize that this is a difficult time, so it’s important that consumers shop around for a better deal.”
About 600,000 residents in New South Wales, South East Queensland and South Australia will be affected by the changes (stock image)
According to the May budget, retail electricity prices would increase by 10 percent in 2023/24.
Ms Savage said the price increase was better than initially forecast in September.
She claimed that prices would have risen by 35 to 50 percent had the government not intervened in the energy market.
“It’s much lower than what we feared…but still tough news for customers,” she told ABC RN on Thursday.
More to come.