Australian households will face a double-digit electricity price rise from July after the Australian Energy Regulator (AER) lifted its standard electricity rate citing the rising costs of power generation.
On its latest final determination on the Default Market Offer (DMO) prices for 2022-23, AER confirmed the following increases:
- Southeast Queensland – 11.3% to 12.6%
- New South Wales – 8.5% to 18.3%
- South Australia – up to 20%
- Victoria (released its own reset) lifting the price by 5%
Small businesses owners will also be affected by the rise with the standing offer prices set to increase up to 13.5%.
The increase is equivalent to more than $250 per year in some cases according to the Australian Competition and Consumer Commission estimates placing the average home electricity bill at $1,434.
AER Chairperson Clare Savage described the decision to increase prices so substantially as particularly difficult but claimed the cost pressures facing power providers were real.
Ms Savage also pointed out that the benchmark price was not supposed to be the lowest available and urged consumers to shop around for a better deal.
“In setting these new DMO prices, we understand the significant impact they will have on some consumers who may already be struggling with cost-of-living pressures,” Ms Savage added.
Five Ways to Bring Your Power Bill Down
Considering that the released DMOs are higher than the current inflation rate (5.1 per cent) millions of households will definitely feel the pinch.
To help you reduce your electricity bill, here are five ways you should definitely try.
Shop around and compare electricity prices
Looking around can help you get the best deal for your electricity needs.
You can choose your electricity provider if you are living in Tasmania, the Northern territory, Western Australia and other areas outside south east Queensland.
There are available energy contracts you can shop around even if you are in areas where there is only one power retailer.
To help you find the best option for your home use, you can visit the Energy Made Easy website, which is an online tool developed by the Australian government to compare electricity and gas contracts available from energy retailers in your area.
Check your energy usage
Monitoring your power usage using an electricity tracker can help you see how and when you are using electricity.
This measure will help you determine specific opportunities to save power and bring down your payables. It’s easier to track your power usage if you have a smart meter installed to your line.
Even though a smart meter will not automatically cut down your bill, it can provide you with suggestion on where you can reduce costs thanks to flexible time tariffs and live-usage data.
Your energy retailer may offer you a smart meter, usually for a cost.
Insulate your home
Around 30% to 40% of residential energy use is consumed for heating and cooling, and the Victorian government believes that insulation can help you reduce up to 45% of energy use.
To improve your energy efficiency and help in reducing your bill, you need to properly insulate your home.
Proper insulation will help your space maintain a comfortable temperature, acting like a thermo in the winter and an esky during summer.
Check your appliance settings
Adjusting the settings of your home appliances can further reduce your power cost.
Check that your television is not too bright and the fridge is not running too cold.
Most appliances such as air conditioners, washing machines, clothes dryers, and dishwashers have built-in eco-settings that automatically adjust settings to conserve energy.
Use LED light bulbs
Are you still using old incandescent or halogen light bulbs?
It’s time to ditch them and install energy-efficient lights. They consume less power and they also last longer.
You can save around $650 over 10 years on your power bill if you replace 10 halogen light bulbs with LEDs.
Rebates and state assistance are also available for households who need help.
If you have any electricity saving tips, we’d love to hear your comments below!