How to beat the upcoming July energy price hike

Energy retailers are set to greet the new financial year on 1 July with substantial price hikes. In New South Wales (NSW), the majority of retailers are expected to raise electricity tariffs by as much as 29 per cent. AGL and Origin have gone a step further, announcing that certain NSW households could face price increases of up to 51 per cent – a staggering figure that far exceeds the regulated benchmark tariffs announced just last month.

Financial services comparison company Compare Club has uncovered a ray of hope for dismayed Australians grappling with yet another exorbitant cost-of-living increase. By switching to a more affordable plan from a retailer who is delaying their price rises and offering bundled energy with broadband, households could save up to $714 per year.

The analysis compared current offers and pricing against the Default Market Offer (DMO) reference price in NSW from several retailers. In addition, some retailers have decided to delay the 1 July price hike, allowing savvy customers to stack additional savings on top of the initial discount.

With energy prices linked to the DMO, customers in many areas of NSW can expect price increases ranging from 29 per cent to a staggering 51 per cent. However, by switching providers, households can mitigate the impact of the July energy price rise and potentially save up to 31.5 per cent in certain areas of NSW.

In fact, households across NSW have the potential to save over $466 by switching energy plans, while customers in regional parts of the state could pocket as much as $714 by switching to a retailer that is postponing their price increase. These potential savings come as a much-needed relief.

Compare Club’s recent Bill Stress Index reveals that while one in five (21 per cent) Australians admit to struggling to make ends meet, only 20 per cent have switched their utility providers. The research also highlights that utility bills, including energy costs, rank as the second biggest stressor for Australian households, only surpassed by mortgages.

The untimely increase in energy costs on 1 July coincides with the middle of winter, a time when many households experience cold homes and higher bills. The Australian Energy Regulator (AER) announced in March that residential customers in NSW, South East Queensland, and South Australia on standard retail plans can expect price increases ranging from 19.5 per cent to 23.7 per cent.

Here’s a breakdown of the DMO in various areas of NSW:

“Seeing energy prices being dramatically increased across New South Wales will be extremely jarring to many households already struggling with the cost of living, but the good news is that there are significant savings to be had for people who are proactive to shop around,” says Paul Coughran, general manager of utilities at Compare Club.

With “some seriously good discounts” now available “if you know where to look”, Mr Coughran emphasises that no Australian household should be overpaying for energy this winter. Although price hikes are imminent, it’s not too late to access savings.

“This is exactly why it’s crucial for consumers to explore their options and secure the best possible deal,” adds Mr Coughran. “By switching providers through financial marketplaces such as Compare Club, individuals can unlock substantial discounts and protect themselves from the impending price rises.”

If you’re concerned about the impact of these price hikes on your budget, now is the time to take action.

“Switching energy providers before the 1 July price hike can give you the power to save hundreds of dollars,” he says.

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