ACCC Urges Consumers to Shop Around for Best Deal on Electricity
The ACCC said that while wholesale electricity prices have eased since their peak in the middle of 2022, they are still well above historical levels. This is due to a number of factors, including high demand, coal and gas price volatility, and the unplanned outage of several power stations.
The ACCC said that electricity bills will continue to increase this year as the record high wholesale prices from mid-2022 continue to flow through to customers. However, the government has announced rebates of up to $500 for eligible households and $650 for eligible small businesses, which will provide some relief.
The ACCC is closely monitoring retailers’ price changes and has warned that any retailer that breaches the Electricity Retail Code or seeks to mislead consumers about the reasons for electricity prices increasing can expect their attention.
According to ACCC Commissioner Anna Brakey, “Wholesale electricity prices have eased since their peak in the middle of 2022, but we expect electricity bills to increase further this year due to the lag in wholesale costs flowing through to customers.”
“Energy retailers enter into supply contracts with generators years in advance to manage volatility, so households haven’t yet seen the full impact of last year’s wholesale price spikes.”
In addition to the wholesale price spikes, the ACCC said other factors contributing to higher electricity bills include rising demand, increased network costs, and the carbon tax.
The average electricity bill in Australia is around $1253 per year, but this can vary depending on the state and territory, the size of the household, and the type of energy plan.
The ACCC has advised consumers to shop around for a better deal and to consider switching their electricity account to a green energy plan. They have also urged consumers to use energy-efficient appliances and to be mindful of their energy consumption.
Western Australia and the Northern Territory are not connected to the National Electricity Market, while retail electricity prices in the Australian Capital Territory, regional Queensland, and Tasmania remain regulated for many customers.
Source&Image: ACCC Media Releases 30 June 2023
