Households in Australia already struggling with rising cost of living will be affected by significant increases in their electricity bills from 1 July. Find out why.
Households in Australia that are already facing rising cost of living will once again receive when their electricity bills increase from 1 July.
The Australian energy regulator on Thursday released its default market offer (DMO) which sets a limit on the amount of energy retailers can charge residential customers.
The BMD shows an increase of between 8.5% and 14.1% in New South Wales, which translates to between $ 119 and $ 227 more.
Southeast Queensland will see an increase of 11.3%, which means an additional $ 165 and South Australians will pay $ 124, up 7.2%.
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The EAR cited rising wholesale costs, exacerbated by the conflict in Ukraine that has put “significant” pressure on coal and gas worldwide for the increase.
Weather events in New South Wales and Queensland also affected electricity demand and coal supply.
In a statement, AER President Clare Savage said the decision was “difficult” to make.
“By setting these new DMO prices, we understand the significant impact they will have on some consumers who may already be struggling with the cost of living pressures,” he said.
“We’ve looked at all the factors that affect the calculation of the BMD and set safety net prices that reflect current conditions and underlying costs for retailers.
“Establishing the DMO is not about setting the lowest price. We are required to set a price that allows retailers to recoup their costs, get a reasonable margin and support retailers to compete and offer better deals and products in an environment. competitive business.
“If a large number of retailers cannot recover their costs and are forced out of the market, as we have seen recently in the UK, this will mean more cost for consumers.
“Our DMO price of the safety net will continue to protect consumers from unjustifiably high prices and will continue to provide the benchmark from which consumers can buy a better deal.”
The AER also said it expects energy prices to continue to rise in NSW and Queensland over the next two years.
Expected Energy Minister Chris Bowen blamed his Coalition predecessor Angus Taylor.
“This is bad news for Australians buying electricity in the markets affected by today’s decision,” he told reporters on Thursday.
“Higher prices are the result of nine years of policy failure.”