More than 215,000 Australians unable to keep up with their electricity bills could see their situation deteriorate further when the country’s biggest networks and providers hike prices for millions of households by up to 13.5 per cent from today.
The Australian Energy Regulator’s latest report found the number of people in debt from January to March rose by seven per cent from the previous quarter and five per cent year-on-year.
The average debt rose to $1415, up by $20 from the last quarter and $309 year-on-year.
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These households will continue to be hit as energy regulators and providers increase their prices from today.
“From today, more than four million households will see their electricity prices rise, which for an average household could add more than $200 to their annual bill,” Canstar Blue data insights director Sally Tindall said.
The annual cost of electricity for the average household on a default plan in New South Wales, south-east Queensland and South Australia will increase by up to $228 due to changes to the default market price announced by the Australian Electricity Regulator in May.
Origin is raising market plan prices by 9.1 per cent in New South Wales, 5.5 per cent in South Australia and 3.1 per cent in south-east Queensland.
Meanwhile, AGL is increasing market plan prices by a whopping 13.5 per cent in New South Wales, 7.8 per cent in South Australia and 7.5 per cent in south-east Queensland.
Origin customers in Victoria and the Australian Capital Territory, and AGL customers in Victoria, will see the same market plan price increases on August 1.
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EnergyAustralia will raise prices in New South Wales, Victoria and the Australian Capital Territory on August 1 and Queensland and South Australia on September 1.
Households will, however, see some relief from the federal government’s extension of its $75-a-quarter energy bill relief scheme until the end of the year.
But, according to Canstar Blue, customers can save even more – between $144 and $390 a year – if they switch from an average-priced plan to the lowest plan on their network.
“Electricity price hikes might feel unavoidable, however, switching providers can potentially bring real relief, especially for those who haven’t switched providers in more than a year,” Tindall said.
“Our research shows that if you switch from an average-priced plan to the lowest, you could potentially save over $300, depending on where you live.
“That’s proper relief, in addition to the extra $150 coming down the line from the federal government.”
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