More than 200,000 Australians are currently in debt to their power companies, a situation that could worsen as electricity prices rise across the country. According to the Australian Energy Regulator, the number of people falling behind on their bills has surged, with price hikes set to exacerbate the financial strain.
With the new changes starting today, households will face additional burdens, and many may find it increasingly difficult to meet their energy costs.
The rising cost of electricity has long been a source of concern for Australian households, and recent figures show that the situation is only worsening. As energy prices continue to climb, the risk of people falling deeper into debt grows.
The Australian Energy Regulator’s most recent report reveals a concerning trend: between January and March, the number of Australians in arrears increased by 7% from the previous quarter. The average debt owed is now $1,415, a notable increase over the past year.
Price Increases Across the Nation
According to Sally Tindall, data insights director at Canstar Blue: “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,”
The country’s largest electricity providers are implementing hikes of up to 13.5%, with the average household facing an additional cost of over $200 annually. This represents a substantial increase in what many already regard as an unsustainable financial burden.
According to Canstar Blue, market plan prices are rising sharply in key regions, including New South Wales, South Australia, and Queensland. For example, Origin Energy will increase prices by 9.1% in New South Wales and 5.5% in South Australia.
Similarly, AGL is imposing price hikes of up to 13.5%, with these increases expected to take effect in stages, depending on the region. Victoria and the Australian Capital Territory will see similar hikes beginning next month.
These increases follow changes to the default market price announced by the Australian Electricity Regulator in May, which will push up the cost of electricity for the average household in New South Wales, South-East Queensland, and South Australia by up to $228 per year.
Government Relief and Potential Savings from Switching Providers
While the situation is dire for many households, there is some relief in the form of the federal government’s energy bill relief scheme. Under this scheme, eligible customers will receive $75 per quarter until the end of the year, which can help ease the immediate burden.
However, experts suggest that switching energy providers could lead to substantial savings for many households. According to Canstar Blue, by switching from an average-priced plan to the lowest-priced option available, Australian households could save between $144 and $390 annually.
“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.
