Electricity prices will go up in July: How much more you’ll pay and how to save

Posted: 25 May 2023 8:31 am
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The Australian Energy Regulator and Essential Services Commission reveal electricity price hikes for households and small businesses in NSW, VIC, SA and south-east Queensland.

We're seeing a repeat of 2022 as the Australian Energy Regulator (AER) and Essential Services Commission (ESC) make it official that electricity prices will once again go up starting 1 July 2023.

Households in NSW, QLD and SA that are on standing retail plans (also known as standing offers), will see price increases of 20.8% to 23.9% without controlled loads, and between 19.6% to 24.9% with controlled load.

Small business customers are facing price increases of anywhere between of 14.7% to 28.9%, depending on where they're based.

According to the ESC, VIC residential customers and small businesses will see an average increase of 25%.

This benchmark pricing on standing offer plans is also known as the Default Market Offer (DMO), Victorian Default Offer (VDO) or reference price. It is the maximum amount energy retailers can charge customers that are on standing offers.

Electricity price changes for NSW, SA and QLD

Here's how much more you could end up paying based on which state you're in and the network connecting you to the electricity grid.

State/NetworkHouseholds without controlled loadHouseholds with controlled loadSmall business without controlled load
NSW (Ausgrid)$315 (20.8%)$440 (20.7%)$639 (14.7%)
NSW (Endeavour)$392 (21.4%)$594 (24.9%)$816 (21.6%)
NSW (Essential)$435 (20.8%)$487 (19.6%)$860 (17.5%)
QLD (Energex)$349 (21.5%)$402 (20.5%)$756 (21.9%)
SA Power Networks$439 (23.9%)$512 (22.5%)$1,310 (28.9%)

Note: A controlled load is any type of specific appliance that requires separate metering. This includes things like hot water systems and pool pumps.

The price changes are slightly different to those released in AER's draft decision in March 2023, with mostly those in QLD and SA worse off than before.

According to the AER, the prices hikes could have been a lot worse, and possibly 50% more, if the government hadn't intervened and capped the price of coal and gas.

Electricity price changes for VIC

The benchmark pricing for VIC is released by the ESC instead of the AER.

Here's what the increase from 1 July 2023 will look like for people residing in the state.

AusnetCitipowerJemenaPowercorUnited EnergyAverage
2023-24$2,026$1,571$1,720$1,793$1,666$1,755
2022-23$1,632$1,293$1,352$1,412$1,324$1,403
% increase24%22%27%27%26%25%

The final decision is around $74 lower for households and $126 lower for small businesses compared to the draft decision in March 2023.

So, how can I save on my electricity bills?

The best thing you can do right now and is switch to a better electricity plan, especially with winter just around the corner.

Around 10% of Australians are on a standing offer contracts and missing out on hundreds of dollars in savings.

Standing offers are only meant to act as a safety net for households that don't shop around for energy deals.

As a rule of thumb, you should be comparing energy plans every 12 months and switching to a better deal. Also, look for plans that are at least 8-10% lower than the reference price.

Compare energy plans in NSW, QLD, SA or VIC, especially before the price hikes come into effect.

"In setting the DMO price this year we have sought to protect consumers from unjustifiably high prices and at the same time allow retailers to offer consumers better deals than their standard plans," said AER chair Clare Savage in a media release.

"No one wants to see rising prices, and we recognise this is a difficult time, that's why it's important for consumers to shop around for a better deal."

Did you know your household could be eligible for up to $500 in energy rebate from the federal and state governments?

Energy deals for May 2023 that can help you save money

There's a few deals floating around for new customers that are worth considering.

1. AGL - Get up $150 in sign up credit

New customers in VIC can get up to $150 credit on selected energy plans on their first bill.

Customers residing in NSW and QLD will also get a sign up credit up to $100.

Get up to $150 sign up credit on selected AGL plans

New customers from VIC, NSW and QLD can get up to $150 credit on selected energy plans on their first bill. T&Cs apply.

New customers from VIC, NSW and QLD can get up to $150 credit on selected energy plans on their first bill. T&Cs apply.

2. OVO Energy - $190 in welcome credit

Households in NSW, QLD and SA can sign up to OVO Energy and receive $190 in welcome credit, paid over 12 months.

Get $120 welcome credit when you join OVO Energy

Credit applied in monthly installments of $10 over 12 months. T&Cs apply.

Credit applied in monthly installments of $10 over 12 months. T&Cs apply.

3. Energy Locals - 50% off membership fees and sign up credit

Households in NSW and SA can get 50% off their annual membership fees. Those in VIC are eligible for $100 in sign up credit on Energy Locals' Online Member plan.

Save up to $100 with the Energy Locals Online member plan

New customers in NSW, SA and VIC save up to $100 when they sign up for the Online Member plan. Once per customer only. T&Cs apply. Ends 30.06.23

New customers in NSW, SA and VIC save up to $100 when they sign up for the Online Member plan. Once per customer only. T&Cs apply. Ends 30.06.23

You can check out our roundup of energy deals for May 2023 for more options.

Update: We've updated the news with information from ESC on prices hikes in Victoria.

Stressing about your heating bills this winter? Here are 3 simple tips to help you save on your energy bills.

Image: @Life-Of-Pix via Canva.com

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