Electricity Bills Set to Increase by Up to 9% in July

Brace yourself—electricity prices are on the way up, adding more pressure to the already tough cost-of-living crisis. The Australian Energy Regulator (AER) just released its draft "default market offer" (DMO), which means price caps on standing retail plans are set to increase from July 1.

So, what does this mean for you?

• Households in NSW, South-East Queensland, and South Australia could see their power bills go up by 2.5% to 8.9%, adding between $60 and $140 per year, depending on where you live.

• Small businesses won’t be spared either, with potential increases ranging from 4.2% to 8.2%.

• Victoria is a mixed bag—some areas might see a small drop of $19 per year, while others could face increases of up to $68. On average, Victorians will pay $12 more per year than last year.

AER Chairwoman Clare Savage acknowledged that this comes at a tough time for many people, especially those still recovering from ex-Tropical Cyclone Alfred in northern NSW and South-East Queensland.

“We know that cost-of-living pressures are front of mind for many households and small businesses,” she said. “We’ve looked at every cost involved in setting these prices to make sure they fairly reflect the cost of supplying electricity.”

What Can You Do?

With prices on the rise, it’s a good time to:

• Compare energy plans – If you’re on a default standing offer, switching to a market offer could save you money.

• Look for rebates – Some states offer concessions or discounts to eligible households.

• Cut back where you can – Simple changes like turning off unused appliances and using energy-efficient lighting can help.

While no one likes higher power bills, staying informed and shopping around for better deals could help soften the blow.