Millions Face Electricity Bill Hike as AGL & Origin Announce Price Rises
Millions of Australians are bracing for a steep electricity bill hike, as major providers AGL and Origin Energy confirm price increases starting July 1. This surge comes amid rising wholesale and network costs, putting added pressure on household and small business budgets Nationwide.
What’s Driving the Electricity Bill Hike?
Recent moves by the Australian Energy Regulator (AER) to increase the Default Market Offer have triggered a wave of price hikes. These adjustments affect anyone on standard/uncompetitive plans:
- AGL will raise electricity prices by an average of 13.5% in NSW, 7.8% in South Australia, 7.5% in Queensland, and 6.8% in Victoria, adding hundreds to annual bills.
- Origin energy is increasing at rates of 9.1% in NSW, 5.5% in South Australia, and 3-4% in Queensland. Victorian details haven’t yet been finalised.
Meanwhile, the AER’s determination also forecast increases of up to 8.6% in Sydney, 6.2% in Melbourne, and 3.7% in Brisbane, effectively making Sydney residents pay $145 more per year.
Big Hits Across Households and Businesses
- Households in NSW face up to $300 extra per year. Nationwide, homes could see $70–$191 added annually, depending on their city.
- Small businesses in NSW, Victoria, Queensland, and SA are also significantly affected. Origin has warned of an 8.3% hike in electricity, nearly $500 more annually, and an 8.6% gas rise ($741 extra) from July.
Cumulatively, electricity prices have climbed 40% over two years, with NSW households now paying $800 more annually to run everyday appliances than the national average.
Why Is This Happening?
Energy providers point to several cost pressures:
- Wholesale generation costs remain elevated due to coal and gas price trends.
- Network and retail operating costs also drive expenses upward.
- Per the AER, rising defaults serve as a new benchmark, prompting broader market-wide increases.
Aid Measures and Help Available
Governments and providers are offering relief:
- The federal Energy Bill Relief Fund delivers $75 quarterly to households from July to offset costs.
- In Victoria, concession holders get an additional $100 annual support.
- AGL and Origin Energy both offer hardship support programs; AGL’s Stay Connected grants bill credits, while Origin’s Power On program shields vulnerable customers.
What You Can Do Today
- Review Your Plan
Canstar’s Sally Tindall urges households to compare reference prices and market offers, some plans can be up to 27% cheaper than the default pricing.
- Use Government Comparison Tools
Compare providers on the Energy Made Easy platform (National) or Victorian Energy Compare for localised options.
- Seek Assistance if Needed
Retailers offer hardship-care support. If paying bills is becoming difficult, reach out early to access flexible payments or credit assistance.
- Consider Energy Efficiency
Simple upgrades like LED lighting or smart thermostats can help reduce electricity usage and moderate bill impacts.
Final Take
The looming electricity bill hike, with rises to 13.5%, will hit millions of households and businesses starting July 1, pushing up costs across the board. While relief measures will cushion the blow, this remains an urgent time to act:
- Review and compare energy plans
- Reach out for hardship support if needed
- Explore energy-saving changes
Being proactive now can significantly lessen the impact of this challenging price surge.
FAQs
Across Australia, households might pay between $70-$300 extra annually, while small businesses in NSW could face increases near $500.
Both AGL and Origin price hikes take effect July 1, with some residential rate spikes beginning August 1 in NSW.
You’ll automatically receive federal subsidies ($75 per quarter); concession holders in Victoria get extra support. Plus, both retailers have hardship programs available.
Yes. Many non-default plans are discounted, some 27% cheaper than benchmark rates. Compare using government online tools.
Although renewables are increasing, high wholesale costs, network investments and retail margins are still inflating bills. NSW grids also faced thermal shutdowns and transitions affecting prices.
Disclaimer:
This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.