Households in New South Wales could be affected by energy price increases of up to 130% as soon as wholesale costs rise next week.
Energy retailers have begun writing to customers about double-digit price increases as the cost of coal and gas continues to skyrocket.
One of the biggest increases is expected to be Discover Energy, which warns that supply charges would increase by 130 percent.
Energy prices could rise as much as 130 percent starting next week. (9 News)
Wholesale energy prices have risen by about 141 percent over the past year alone because the price of coal and gas has more than doubled.
“The perfect storm is really the only way to describe what’s happening in the energy market,” said Christstar Seib of Canstar Blue.
“The first signs of this season of rising prices are that it will rise very sharply over the next six months to a year,” said Joel Gibson of One Big Switch.
Energy experts recommend that households set their energy tariffs to prevent price increases from impacting their pockets.
“With rates going up a lot, a lot, some of the biggest prices we’ve ever seen in Australian memory, fixing your plan at a cheap price for 12 months seems like a really good deal,” Gibson said.
Energy prices are rising due to rising cost of coal and gas. (9 News)
The Australian energy regulator will make a pre-determined market bid announcement on Thursday, which is a government price cap on how much a retailer can charge these electricity customers.
The three largest retailers, Origin, EnergyAustralia and AGL, will announce their price increases in mid-June, which are expected to be around 15 per cent.
“So a 15 percent price increase would be about $ 200 for the average family,” Gibson said.
“I’m afraid we can see worse than 15 percent of some of the big retailers.”
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Tango Energy’s Home Select is 27% lower, while Nectr’s 100% Clean is 24% below with a $ 50 benchmark credit.
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Tango, Nectr and EnergyAustralia have fixed rates. (9 News)
Tango, Nectr and EnergyAustralia rates are also fixed, although what customers pay still fluctuates with usage.
“Make sure you keep comparing your energy rates,” Seib said.
“If you don’t do it regularly, you can’t be sure you have the cheapest rate in your neighborhood.”
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