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Saturday, Mar 15, 2025
Outside the box.
Anticipated Rise in Energy Bills for Australian Households and Businesses
Proposed increases in energy prices across southeast Australia raise concerns as consumers face ongoing financial strain.
Energy bills in southeast Australia are expected to rise significantly starting 1 July 2025, following the release of draft 'safety net' prices by the Australian Energy Regulator (AER).
The draft decision indicates that the default market offer (DMO), which caps the prices electricity retailers can charge households and businesses, could see an increase of up to 9%.
This proposed hike follows a previous surge of about 40% experienced by consumers two years ago, exacerbating financial pressures on households already grappling with high energy costs.
The DMO applies to New South Wales (NSW), southeast Queensland, and South Australia, regions where electricity prices are critically monitored.
Recent surveys indicate that nearly two-thirds of Australians are struggling to handle the rising cost of energy.
A report by the Australian Council of Social Service (ACOSS) revealed that half of the 1,011 respondents reported having to forgo food, medicine, or other essentials to manage their energy bills.
Among the most affected demographics are First Nations people, renters, and those reliant on income support, with 88%, 76%, and 75% respectively indicating difficulties in meeting their energy expenses.
ACOSS's Chief Executive Officer, Dr. Cassandra Goldie, highlighted the alarming reality faced by many, stating that citizens are becoming ill, skipping meals, and delaying medical care due to the financial burden of energy costs.
There is a call for increased support in enhancing the thermal efficiency of housing, as well as promoting access to solar energy and home battery systems, especially for low-income households and First Nations communities.
The draft decision outlines anticipated price adjustments, with NSW households projected to experience the largest increases of between 7.8% and 8.8%.
Controlled load users in NSW could see their bills rise to a range of $2,714 to $3,174, while other customers face costs of $1,969 to $2,713.
In southeast Queensland, the prices are expected to rise to $2,475 for controlled load customers and $2,185 for non-controlled load customers, marking increases of 2.5% and 5.8% respectively.
South Australian households will similarly be impacted, with controlled load payments reaching up to $2,881 and increases of 4.4% to 5.1% for other users.
Small businesses are also set to feel the impact of these changes, facing price hikes ranging from 4.2% to 8.2%, with anticipated bills between $4,439 and $6,183.
AER Chair Clare Savage noted that escalating cost pressures are affecting nearly all components of the DMO, reflecting an ongoing trend in energy pricing.
The draft of the default market offer remains open for consultation until 3 April 2025, with final decisions expected to be released in May.
The draft decision indicates that the default market offer (DMO), which caps the prices electricity retailers can charge households and businesses, could see an increase of up to 9%.
This proposed hike follows a previous surge of about 40% experienced by consumers two years ago, exacerbating financial pressures on households already grappling with high energy costs.
The DMO applies to New South Wales (NSW), southeast Queensland, and South Australia, regions where electricity prices are critically monitored.
Recent surveys indicate that nearly two-thirds of Australians are struggling to handle the rising cost of energy.
A report by the Australian Council of Social Service (ACOSS) revealed that half of the 1,011 respondents reported having to forgo food, medicine, or other essentials to manage their energy bills.
Among the most affected demographics are First Nations people, renters, and those reliant on income support, with 88%, 76%, and 75% respectively indicating difficulties in meeting their energy expenses.
ACOSS's Chief Executive Officer, Dr. Cassandra Goldie, highlighted the alarming reality faced by many, stating that citizens are becoming ill, skipping meals, and delaying medical care due to the financial burden of energy costs.
There is a call for increased support in enhancing the thermal efficiency of housing, as well as promoting access to solar energy and home battery systems, especially for low-income households and First Nations communities.
The draft decision outlines anticipated price adjustments, with NSW households projected to experience the largest increases of between 7.8% and 8.8%.
Controlled load users in NSW could see their bills rise to a range of $2,714 to $3,174, while other customers face costs of $1,969 to $2,713.
In southeast Queensland, the prices are expected to rise to $2,475 for controlled load customers and $2,185 for non-controlled load customers, marking increases of 2.5% and 5.8% respectively.
South Australian households will similarly be impacted, with controlled load payments reaching up to $2,881 and increases of 4.4% to 5.1% for other users.
Small businesses are also set to feel the impact of these changes, facing price hikes ranging from 4.2% to 8.2%, with anticipated bills between $4,439 and $6,183.
AER Chair Clare Savage noted that escalating cost pressures are affecting nearly all components of the DMO, reflecting an ongoing trend in energy pricing.
The draft of the default market offer remains open for consultation until 3 April 2025, with final decisions expected to be released in May.
