Victorians typically pay the cheapest energy rates in Australia, but households in the state are about to see a significant increase in costs for both gas and electricity supply.
From January 2017, households can expect a combined electricity and gas bill increase of as much as $310, with the sharp rise blamed on the closure of the Hazelwood power plant. Customers without gas can expect to pay an extra $210 following the price hikes.
It comes a week after Victoria’s energy regulator, the Essential Services Commission, reported that 70,000 households are in energy retailer hardship programs – up 30% on the previous 12 month. In addition, 61,000 households have had their energy disconnected for not paying bills over the last year.
Victoria electricity price increases
Households in Victoria who remain on standing offer electricity plans will cop price increases of between 6.5% and 11.5% from January 2017. However, prices for market contracts, which include discounts, will also rise. Price increases are as follows:
- Origin Energy: 6.5%
- Red Energy: 6.7%
- Momentum Energy: 8%
- EnergyAustralia: 9.8%
- AGL: 9.9%
- Powerdirect: 9.9%
- Alinta Energy: 6.9 to 11.5% (depending on distribution area)
- GloBird Energy: 38.5%
How will these price increases impact your bill? As an example, EnergyAustralia says its customers can expect to pay an extra $127 to $145 a year more, depending on whether they are on standing offer or market contracts.
Victoria gas price increases
Households with gas can expect similar price increases. AGL customers will see their bills increase by 8.3%, Origin by 7.8% and EnergyAustralia by 6.1%. Households with EnergyAustralia should expect to pay about $90 a year more.