As cost-of-living increases start to bite, there is one cost that many Victorians are concerned about – household energy.
We’ve already experienced rising gas and electricity prices in 2022. Costs are likely to increase at least another 30% this year. This makes a total predicted rise of about 50% over the 2022 / 23 period. That could add an additional $1,300 to the combined average electricity and gas bills for Australian households over an 18-month period.
Why are costs rising by so much at the moment?
Put bluntly, rising fossil fuel costs – in particular black coal – have pushed Australian wholesale prices up. In turn, this affects the retail prices that households are charged. The war in Ukraine has played a part in pushing up costs, but there are other factors too, such as gas supply issues for the domestic market. Whilst Australia produces far more gas than it needs, most is sold off on the lucrative overseas market at a higher price. This has left domestic supply at risk of a shortfall. To do what they can to counteract this, the government has moved to ensure security of domestic supply at competitive prices from Australian gas producers.
And the longer-term view?
In the longer term, we can expect renewables at scale to lower energy prices. To achieve this, we require clear energy policy. It will also need serious technological investment in new generation, storage, transmission and distribution to manage a much higher percentage of renewables in the electricity grid.
Can you protect yourself from the price rises?
Energy retailers and comparison sites abound with energy saving tips and tricks for the home, and all those little savings add up. But THE SINGLE MOST IMPORTANT THING you can do to save money is to check your rates regularly. Research from the Essential Services Commission showed that over 70% of us still don’t do this. Put simply, 7 out of 10 Victorians are paying more than they need to for energy.
Just like car insurance, health insurance and similar services, shopping around and knowing what your retailer is charging can help you minimise the rates you pay for electricity and gas.
Remember there are no penalties or fees for switching retailers – and it should only take a few minutes to organise. If you haven’t checked your electricity plan for a while, it could save you $100’s over the course of a year.
Final thoughts
Joulius finds you an average saving of $270 per year (and often it’s a lot more than this).
It takes 2 minutes to load a recent bill and get results. Try it now at joulius.com.au
