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Posted: 2023-06-30 02:02:15

Some Australian households are facing power price hikes of up to 100 per cent as the "long tail" of last year's energy crisis hits home hard, according to consumer advocates. 

Under decisions by energy regulators, benchmark electricity tariffs will increase between 20 and 25 per cent across south-east Queensland, New South Wales, Victoria and South Australia.

The increases come into effect on Saturday, the start of the new financial year.

Joel Gibson from consumer group One Big Switch said that while the headline numbers were bad enough, many customers whose deals were expiring faced much worse.

Mr Gibson said there were reports some households' power prices were set to double as cheaper offers lapsed and the huge costs incurred last year finally washed through.

"What we're about to see is probably an average 25 per cent power price hike right across the eastern and southern states of Australia," Mr Gibson said.

"And, in fact, in some cases people are getting much, much higher increases — 50, 80, even 100 per cent in some cases.

"Unfortunately, this is the long tail of the chaos in the wholesale market that we saw last year."

'Middle Australians to get hit hardest'

Record fuel prices helped propel electricity markets to unprecedented levels last year, at one stage prompting authorities to suspend normal operations to stop things from spiralling out of control.

Consumer advocate Joel Gibson says it's never been more important for consumers to shop around.()

Mr Gibson said the bill for the turmoil was now being paid but it was coming at the worst possible time for many households who were already grappling with rocketing costs of living.

He said $3 billion of combined assistance from state and federal governments would help ease the pain for many consumers, although it would not shield everybody.

"I think it's going to hit particularly those households that don't necessarily have access to concession cards or other rebates, that don't necessarily qualify, but aren't necessarily high-income households," he said.

"So, it's middle Australians that are going to get hit hardest of all by all these increases because they may not qualify for any of those extra rebates or assistance that's coming.

"And yet, they're going to get, probably, a $500 to a $1,000 increase in their energy costs at a time when their insurance premiums are going up, their mortgage rates or their rents are rising.

"So, it's this cumulative impact, this perfect storm, of price rises across the board that's going to make it very, very hard for medium-income families over the next six to 12 months."

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