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The cost of keeping homes warm this winter is about to jump, with two major energy retailers confirming bills will soon rise hundreds of dollars per year.
- AGL and Origin Energy announce energy price rises
- Prices will rise between 20 and 29 per cent from July and August
- The retailers say increased wholesale electricity prices are mainly to blame
AGL and Origin Energy announced they will pass on higher prices due to inflation and higher wholesale costs to customers on variable rate market contracts.
The changes will come into effect in New South Wales, South Australia and Queensland from July 1, and in Victoria from August 1.
The price increases for residential properties range from 21 per cent to nearly 30 per cent.
Average price increases for residential customers on variable rate market contracts | ||||
|---|---|---|---|---|
NSW | VIC | QLD | SA | |
AGL | $540 (29.7%) | $341 (25.5%) | $447 (26.4%) | $565 (29.8%) |
Origin Energy | $407 (21.1%) | $361 (25.5%) | $347 (21.6%) | $405 (24.2%) |
Queensland retiree Linda Rhule said she was "very concerned and worried" about a price hike.
She said she would be using her heating less over winter to try and reduce her energy consumption.
"We're going to go through some hard times, I can see some rough times ahead," she said.
"It's the same for everyone, not just us."
Uniting Communities chief executive Simon Schrapel said he was concerned about the impact of price rises on low-income households.
"That's our primary concern, we know people are doing it really tough," he said.
However, both AGL and Origin said they would implement measures to help shield their most vulnerable customers from price hikes.
Origin Energy's general manager of brand and customer experience, Catherine Anderson, said the company would be "absorbing the price change" for customers in their Power On hardship program.
"So we can help protect them at a time when we know budgets are already tough," she said.
AGL said eligible customers on its Staying Connected hardship program will receive up to $400 in bill credits in the winter period to minimise the impact from price increases.
Both retailers recommended anyone experiencing difficulties paying their bills to contact them for assistance.
Small businesses will also face a price hike, with Origin Energy outlining an average increase of $590 in Victoria, $705 in Queensland, $918 in New South Wales, and $1,133 in South Australia.
Kate Furness, an Adelaide small business owner who recently bought her own home, said price rises at both work and at home were an ongoing concern.
"It's in the back of your mind all the time, it is a worry," she said.
The sole trader said she was now considering renting out her newly purchased house to help cover costs.
"I'm happy sleeping in my swag if it it comes to it, but it's not ideal," she said.
"And in terms of running a food business, the priority is putting all the money and finances into quality control and safety and everything to get that done."
South Australian bakery owner John said he has already had to make tough decisions to keep up with rising business costs.
He said he had to close storefronts and let go of staff because it was "costing us too much".
"Instead of 10 staff we've only got four," he said.
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