Australian households struggling under mounting cost of living pressures will be hit with another price hike this week as a major energy provider raises its costs in several states.
From Wednesday, EnergyAustralia, which provides electricity and gas to 1.6 million customers across eastern Australia, is increasing prices by up to 14.1 per cent per year for those on variable electricity contracts in Queensland, NSW, South Australia and the ACT.
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Compare the Market general manager of energy Anthony Fleming said the increase would add hundreds of dollars to annual bills for households.
“The harsh reality is that it’s costing more to generate the electricity we use to power our homes and businesses,” Fleming said.
“Wholesale prices have increased due to supply issues, wild weather events, plant outages and the ongoing war in Ukraine, meaning electricity retailers are paying more for the electricity they sell to Australians.”
Customers on market variable plans will face annual price changes of about $221 (10.2 per cent) in the ACT, $276 (12.4 per cent) in NSW, $301 (14.1 per cent) in Queensland and $252 (10.9 per cent) in SA.
Small-to-medium size businesses will also be hit with increases as plans rise by about $604 per year in the ACT, $552 in NSW, $641 in Queensland and $516 in SA.
Fleming flagged more price pain is on the horizon as other smaller tier 2 retailers are likely to hike their prices from July.
“We know Origin has already upped prices for some customers and other retailers will be moving this year,” he said.
Energy giants AGL and Origin Energy passed on price increases to natural gas customers in Victoria, NSW, Queensland and SA on February 1, with some households forced to find hundreds of extra dollars a year for their bills.
EnergyAustralia also bumped gas prices for its Victorian customers by 26.7 per cent or about $480 a year.
Wednesday’s changes were announced earlier this month, with EnergyAustralia saying the move was in response to a “perfect storm of issues” last year that meant it was costing more to generate and purchase wholesale electricity.
“We know these price rises won’t be welcomed by households already experiencing cost of living pressures,” chief customer officer Mark Brownfield said at the time.
“For customers who might be struggling to pay their energy bill, we want them to please get in touch with us as early as possible.”
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