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$230 energy relief: How the price caps will work

A composite image of Australian money and numerous energy bills staked on top of one another.
Aussies are set to get relief for soaring energy prices. (Source: Getty)

The Government is working to impose price caps on coal and gas companies to deliver energy-bill relief to Aussie households.

Treasury estimated the price caps could save the average household around $230 a year on their energy bills. The average household spends $364 per quarter on electricity, equivalent to $1,456 per year.

In the October Budget, Treasury forecast a 56 per cent rise in electricity prices and a 44 per cent increase in gas prices in 2023, while the Australian Energy Regulator warned of a slightly more palatable 35% rise in energy bills.

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Energy bill stress was at its highest in November, with 29 per cent of Aussies listing their energy bill as one of their most stressful expenses, up from 19 per cent in March, according to Finder's Consumer Sentiment Tracker.

“It’s been a huge year for Australians who are not only struggling with higher energy and gas bills, but also the cost-of-living crisis in general,” Finder energy expert Mariam Gabaji said.

"The power-bill relief promised could take up to $200 off energy bills, but the exact figure is yet to be disclosed and could vary between states.

“While any power-bill relief will be welcome news to many, it’s not going to be enough to soften the blow.”

Gabaji said the best bet for cushioning bill shock was to find a cheaper deal with another energy supplier.

“In some states, the difference between the cheapest and most expensive plan is $200 to $300 per year. Be sure to take advantage of other energy rebates and concessions,” Gabaji said.

"If you’re in a position to do so – invest in energy-efficient appliances to keep your bills down in the long term and don't leave them on for longer than you need.”

Gabaji said there were some practical and easy steps you could take in your home to keep your bills down.

“Set your thermostat this summer to 24 to 25 degrees. Every extra degree below that can add 10 per cent to your energy costs,” she said.

“Remember to turn off appliances by the wall. Even appliances on standby mode can end up costing you up to $100 over the year.

"Consider initiatives such as the Small-scale Renewable Energy Scheme. This can help fund your uptake of solar energy if you're eligible – even if it's just a solar hot water system.”

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