Millions to pay more as AGL and Origin lock in power price increases

Brace yourselves, Australia—the cost of keeping the lights on is about to get a whole lot steeper for millions of households.

Two of the country’s biggest energy retailers, AGL and Origin, have confirmed they’ll be hiking electricity prices from 1 July, with some customers facing annual bill increases of up to $300.

If you’re already feeling the pinch from rising living costs, this news might have you reaching for the off switch.

How much more will you pay?

Let’s break down the numbers. AGL customers in New South Wales (NSW) are set to cop the biggest hit, with prices jumping by a whopping 13.5 per cent.

That’s an average increase of $267 a year, but for some, the extra cost could be as high as $300.

South Australians (SA) aren’t far behind, with a 7.8 per cent rise (about $200 more per year), while Queenslanders will see a 7.5 per cent bump ($155 extra).

Victorians, you’re looking at a 6.8 per cent increase, or roughly $110 more on your annual bill.

Origin customers aren’t escaping unscathed either. Their price hikes average 9.1 per cent in NSW, 5.5 per cent in South Australia, and between 3 and 4 per cent in Queensland.

Victorian Origin customers are still waiting for the final word on electricity prices, but gas bills are set to rise by $85 a year.

Why are prices going up (again)?

If you feel like you’ve heard this story before, you’re not wrong.

This is the third consecutive year of significant price hikes, with the average annual electricity bill rising by as much as $360 since June 2023.

The main culprits? Increased network charges (the cost of maintaining the poles and wires), higher wholesale electricity prices, and the rising costs of serving customers.

Energy regulators have approved increases to the ‘default offer’—the standard plan for customers who don’t shop around.

While only about 10 per cent of households are on these default contracts, the default price acts as a benchmark for all other market offers. So, when it goes up, most other plans follow suit.

What can you do about it?

The good news? You’re not powerless. Canstar’s data insights director, Sally Tindall, says now is the time to take control of your energy bill.

‘The cold hard truth is that electricity price hikes are pretty much inevitable in states such as NSW, Queensland and South Australia this winter,’ she says.

‘However, unless you’re on an embedded network or in a state with limited options, this is one bill you can, and should, take control of.’ Here’s how:

• Shop around: Don’t just accept the price hike. Use comparison tools like the Australian Energy Regulator’s Energy Made Easy or, for Victorians, Victorian Energy Compare. You might be surprised at how much you can save.
  
• Check the reference price: Providers must tell you how their plan compares to the government’s reference price. The bigger the discount below the reference price, the better the deal.
  
• Look for competitive plans: In Sydney, some single-rate plans are up to 23 per cent cheaper than the reference price. In Brisbane, the best deals are 27 per cent below the benchmark.
  
• Consider your usage: If you’re a low-usage household, make sure you’re not paying high daily supply charges. If you use more power at certain times, look for time-of-use plans that reward off-peak usage.
  
• Ask about discounts and concessions: If you’re a pensioner, on a health care card, or receiving government assistance, you may be eligible for rebates or concessions. Don’t be shy—ask your provider what’s available.

Is there any relief on the horizon?

The federal government has extended its energy bill relief program until the end of the year.

The first $75 quarterly instalment will hit eligible accounts from 1 July, offering a little breathing room.

But with price rises outpacing relief for many, it’s more important than ever to be proactive.

Why is this happening now?

Australia’s energy market is in a state of flux. 

The transition to renewables, ageing infrastructure, and global energy shocks (think: war in Ukraine, supply chain issues) have all contributed to higher wholesale prices.

While the long-term outlook is for cheaper, cleaner energy, the short-term pain is real.

Have your say

As electricity prices prepare to rise yet again across several states, households are being encouraged to stay informed, explore available options, and make the best decisions based on their own energy usage and financial circumstances. 

While some may feel the pinch more than others, the changes affect a large number of Australians and open up a wider conversation about energy affordability and sustainability moving forward.

How will these changes impact your household budget, and have you considered switching providers to reduce costs? Do you feel that enough is being done to support everyday Australians facing rising energy bills? 

We’d love to hear your thoughts—share your experience or tips in the comments section below.

Also read: How the latest energy ruling could add $228 to your power bill