The Australian energy market is about to be dealt a shakeup on the back of announcements this week that would see residents slapped with huge increases across the board. As the cost of living pressures seem to increase daily, the energy retailers of Australia have sent more shockwaves through a community already battling with increased costs.
In recent weeks, four energy retailers have contacted their customers to advise they can expect price hikes this year.
The big increases
While experts say the increases won’t stop at the current announcements, here are just some of the proposed price hikes notified by retailers:
- Discover Energy – NSW and SA customers are set for a peak rate rise of 95%, on top of a 130% supply charge increase in NSW and 24% in SA.
- LPE – Some Queensland customers have been notified of 100% usage rate increases, and to seek alternative providers.
- Mojo Power – Some NSW residents can expect a 58% usage increase, however, the daily supply charge will drop by 29%.
- ReAmped – Some NSW customers can expect a 43% rise in usage rates.
Some of Australia’s largest electricity retailers, including Origin, AGL and EnergyAustralia have also notified customers that they can expect a price hike in June.
Why the increases?
It seems like a question we’re asking a lot in Australia recently. Why is everything costing more? Many people are tired of hearing excuses regarding Covid and the Russia-Ukraine conflict, however, this one is a little easier to pinpoint.
The wholesale cost of energy has risen by around 141% in the past year, mainly because the price of black coal and gas has more than doubled. And people wonder why we need to invest in renewables…
How to avoid the price increases
There are really two main ways that you can avoid your power bills going through the roof this year. Firstly, you can shop around. With such a variety of increases taking place, you can always vote with your feet. If you receive a letter advising of an increase and you can find a better deal out there, go for it. Tell the retailers you don’t accept their massive price hikes.
Of course, this just gets you into a bit of a merry-go-round of frequently changing retailers, with most of them sure to announce some kind of price increase. The better solution is to go solar.
If you’ve already got solar panels at your home, it’s time to think about upgrading to battery storage as well. With solar battery storage, you can almost completely break free from the energy retailers. This is because excess solar power you generate during the day can be stored and used in the evening. With an existing on-grid system (no battery storage), you still rely on the main grid for your power at night.
If you haven’t made the switch to solar yet, now is definitely the time. Halcol Energy has a range of solar packages to choose from, both with and without battery storage, so the choice is yours. To become self-sufficient and escape the costs of rising electricity prices, contact Halcol Energy today.