Time to read : 4 Minutes
Your Energy Bills Set To Soar From July
Energy bills will increase up to 30%, but data shows some parts of NSW could switch and save up to $613.
The Australian Energy Regulator (AER) sets the Default Market Offer (DMO) for New South Wales, South East Queensland, and South Australia. They announced today that residential customers on standard retail plans could face price increases between 19.5% and 23.7%.
The Victorian Essential Services Commission (ESC) has also announced the Victorian Default Offer (VDO) for 2023/2024. That’s set to be a whopping 30% increase.
What’s that in real money?
Energy bills in Sydney will increase by around $335.
Western Sydney, the Blue Mountains and Wollongong will go up by $383.
Brisbane & Gold Coast bills by roughly $321.
Adelaide power bills will hike by about $401.
Regional and Rural NSW – brace yourselves: The average household faces an extra $463 added to your annual power bill.
What about Victoria’s energy bills?
Victorian households look to be the hardest hit state with a 30% increase on annual power bills costing them around $426 more a year.
WTF is a DMO or VDO?
They’re price caps designed to prevent vulnerable households from overpaying for electricity. You’ll also see them called the ‘reference price’.
Energy companies can set their prices above the DMO and VDO for certain customers, but it’s not common. That said, we’re living through uncommon times and some retailers have done just that.
When does the power pain start?
All of the above energy price increases take effect from 1 July 2023 – but “some retailers have moved to raise prices in advance of today’s announcement, with some energy bills in Regional NSW already $334 above today’s reference price,” says General Manager of Utilities at Compare Club, Paul Coughran.
Sounds steep, doesn’t it?
Given some energy retailers have already increased their prices, there’s no reason why you should wait to switch.
Want some good news about the cost of living?
Energy retailers are starting to reintroduce some very competitive offers for new customers. These have been largely absent for the last nine months, but now it’s possible to make significant savings on your energy bills
Regional NSW customers on the most expensive plan could save up to $613 by switching energy plans today. Victorians can make a difference to their energy costs as well.
"Sydneysiders could save up to $222 and Melbournians up to $183," says Paul.
Compare Club has analysed current market offers and found energy plans that are up to 17% lower than the current DMO.
The Bottom line:
Energy bills were always touted to rise this year – it was just a question of how much extra you’d be paying. At least you’ve got advanced warning.
Area | Annual increase from 1 July | Current annual savings for a DMO or VDO household that switches today |
Sydney (Ausgrid) | $335 | $222 |
Western Sydney & Blue Mountains (Endeavour) | $383 | $320 |
Regional NSW (Essential) | $463 | $279* |
SE QLD | $321 | $238 |
Victoria | $426 | $183 |
Yes, but…
A higher DMO means higher prices. It also means that energy companies are offering more discounts for new customers. Watch this space, as they say.
Households can cut several hundred dollars from their energy bills today just by shopping around.
It’s possible to fix your energy prices – just like you can take out a fixed rate home loan. Expect a few competitive plans to appear ahead of 1 July 2023.
