Bill shock: our energy costs are set to spike by 35%

Fact Checked
Updated 16/11/2023
Bill shock: our energy costs are set to spike by 35%

One in five Australians suffer from energy bill shock, and no wonder with the prices only going up.

Time to read : 2 Minutes

Energy bill prices will skyrocket by 35% next year, or so says Alinta Energy chief executive Jeff Dimery.

Last week he toldThe Australian Financial Review’s Energy & Climate Summit:

“When we run our modelling for energy pricing next year, using the current market prices, tariffs are going up a minimum 35%. It’s unpalatable, nobody wants that, we don’t want consumers tearing up their bills and setting fire to them [but] that’s the reality of where we are headed.” 

Ouch. Sometimes the truth hurts.

What’s going on?

There are a few things happening right now that all point to higher energy bills for Aussie households.

🌎 Worldwide supply issues and the Russian-Ukraine war are continuing to drive up wholesale prices of gas and coal.

🚢 About 70% of Australia’s gas supplies is exported overseas, which means Australian energy retailers are competing with global export prices for our own gas.

♻️ Australia’s transition to renewables will bring down energy prices in the coming years. But in the short term, the closure of coal-fired power plants, inflation and supply chain disruptions are cancelling out the cost reductions.

Ok, so what can you do?

There’s no sugarcoating it. We’re in for higher electricity and gas bills over the coming months. That’s on top of a 25% increase, on average, since April this year.

💡 Be mindful of your energy usage. Look at ways to reduce your energy use around the home, and if you’re on a Time of Use tariff, save things like dishwashing and doing the laundry for off-peak times.

🛒 Shop around. Now is a really good time to check your energy contract to see if you’re getting the best deal for your situation. If you haven’t reviewed your plan for a year or so, chances are you can lock in a better rate by switching.

🌈 The good news... Now that you know about it, you can buckle up and prepare to beat the bill shock.

The bottom line

Soaring energy prices might be a reality, but there are steps you can take to soften the impact.

💰The government says Aussie households can save up to $443 per year by shopping around, so take the power back by comparing your options to find a plan that offers the best value for your energy needs.

The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.