Millions of households will soon face power bill hikes of up to nearly 30%, after two of the nation’s leading energy providers announced significant increases for customers from July 1.
AGL and Origin Energy have both said that customers across New South Wales, south-east Queensland and South Australia can expect to see yearly price increases of between 21.2% and 29.8% from July 1, while Victorian customers will see a 25.5% jump on average from August 1.
For AGL customers, the worst of the price hikes will be passed on to SA and NSW households. As for Origin Energy’s customers, it’s Victorians who are expected to face the biggest bill shock.
Origin Energy’s small business customers will also see significant price rises in the new financial year, with the retailer expecting an average yearly increase of between 20.5% and 27.3% across NSW, VIC, SEQ and SA.
Origin Energy Average Annual Price Increases (Variable Rates)
| State | Residential | Small Business |
|---|---|---|
| NSW | $407 (21.1%) | $918 (20.5%) |
| VIC | $361 (25.5%) | $590 (24.6%) |
| QLD | $347 (21.6%) | $705 (23.2%) |
| SA | $405 (24.2%) | $1,133 (27.3%) |
*Based on average annual consumption profile across all tariff types (single rate, Time Of Use, Controlled Load, and Demand)
AGL Average Annual Price Increases (Variable Rates)
| State | Residential |
|---|---|
| NSW | $540 (29.7%) |
| VIC | $341 (25.5%) |
| QLD | $447 (26.4%) |
| SA | $565 (29.8%) |
Both companies claim that rising inflation and higher wholesale costs are to blame, leaving the retailers with no choice but to pass the costs on.
The changes in question will impact households who are already signed up to the providers and are currently on a variable market offer.
Price increases will be slightly different for residential customers still on standing offers, aligning with default changes also expected on July 1.
According to the Australian Energy Regulator (AER), Origin Energy and AGL currently own about 49% of the residential electricity market share across Australia. For small business customers this sits closer to 47% of the market share.
I am an AGL or Origin Energy customer: What can I do about these changes?
Both AGL and Origin Energy have reassured that customers experiencing financial hardship will still have additional support as a result of these incoming changes.
For eligible AGL customers currently on the retailer’s hardship program, Staying Connected, the retailer told the ABC there will be $400 in bill credit on offer during the winter period to help alleviate bill shock from these upcoming price hikes.
Origin Head of Retail Jon Briskin said Origin Energy would be absorbing costs for its hardship customers in its Power On program.
“Increasing prices is never a decision we take lightly, and especially at a time many people are struggling with higher cost of living,” he said. “We are protecting existing customers in our Power On hardship program by shielding them from these price changes so that they won’t be impacted.
“We’ll spend up to $45 million over the next 12 months to provide support to customers in hardship, which is in addition to the $30m in payment support we have provided over the past year. There is a range of support available for customers in our Power On hardship program including flexible payment plans, tailored debt management, energy efficiency advice, access to government grants and concessions, and referrals to financial counsellors.
“I strongly encourage anyone who is having trouble paying their energy bills to reach out today so we can help.”
The price hike news comes as a new survey reveals more than half of Aussie households are currently more worried about their ability to pay their power bills now than 12 months ago.
Canstar Blue Utilities Editor Tara Donnelly said concerned customers may wish to compare their new rates to others in market to ensure they are still paying a fair price.
“From July 1, other providers alongside AGL and Origin Energy will also look to update their pricing, which means a better deal may become available,” she said. “To ensure you are still on the best possible price in your area, it may pay to compare your new rates among those offered from other providers.”
Worried about incoming price hikes? Make sure you aren’t missing out on a better deal and compare from a range of cheap plans below
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3911kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4613kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4011kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
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