Power bills set to soar across Australia this summer
Electricity prices are expected to rise thanks to gas price hikes – but switching to a better deal could save Aussies 20% on their power bills
Australians should ensure they are on the best energy deal available for them now, as experts warn that electricity prices are set to soar this summer.
Australian Power Project chief executive Nathan Vass told News Corp this week that increased gas prices would impact wholesale electricity prices dramatically – with each $1G/J increase in gas prices equating to an increase in wholesale electricity prices of $11 per megawatt hour.
Vass told The Australian newspaper that he expected a rise in domestic gas prices of up to 40% — jumping to $15G/J in January and February, a massive increase on 2018 averages of $0.68G/J.
“So if gas jumps to $15G/J you could see the average wholesale price hit $140MWh,” Vass told the publication.
But there is a way for consumers to ensure that they are not paying more than they need to with price rises on the horizon — the recent ACCC report on energy identified switchers as those who benefit most from the current energy market, rather than those who stay loyal to a provider, saying:
“Those customers who have been active in the market, regularly reviewing options and switching between offers, have been the beneficiaries of competition.”
Indeed, a report from The Independent Pricing and Regulatory Tribune (IPART) last week showed that customers who are not shopping around and switching to better deals are paying approximately 20% more on their power bills than those who are.
“…customers who had not engaged in the electricity market could be paying around 20 per cent more than those who had shopped around for a better deal,” IPART Chairman Dr Peter Boxall told Fairfax Media.
And there’s no time like the present for Aussies to make sure they’re on the best deal available for their circumstances. According to reports electricity prices rose 5% last week alone in Australia — at the time, Energy Action CEO Ivan Slavich told Fairfax Media that despite government claims, energy prices were still on the rise.
“The government are doing all this advertising about prices going down, but prices are going up,” Slavich said.