Electricity prices to jump 25 per cent - here’s how to avoid bill shock

Electricity prices will increase from July. Here’s how you can save. (Source: Getty)

Aussies have been dealt a cost-of-living blow as we head into winter, with electricity prices now set to skyrocket by up to 25 per cent.

From July 1, electricity prices will rise by between 20 and 25 per cent for Aussies in New South Wales, Victoria, South-East Queensland and South Australia who are on the default offer, which acts as a price safety net.

The Australian Energy Regulator (AER) released its final determination today, with the price increases higher than the draft increases of 20 to 22 per cent announced in March.

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Victoria’s Essential Services Commission (ESC) has also announced an increase of 25 per cent for Victorian customers, which is lower than its proposed 30 per cent increase.

The decision will affect around 600,000 customers who are on the default market offer in NSW, South-East Queensland and South Australia, and around 400,000 Victorian households on the default offer.

How much are electricity prices going up?

NSW households will face an increase of between 19.6 per cent and 24.9 per cent, Queensland residents will see an increase of between 20.5 per cent and 21.5 per cent, and South Australian households will see increases of between 22.5 per cent and 23.9 per cent.

Here’s how much what works out to:

Victorian households will see electricity prices increase by 25 per cent. The ESC said a typical household would see their bills increase from $1,403 to $1,755 next financial year - a jump of $352.

5 tips to avoid bill shock

Finder utilities expert Mariam Gabaji is urging Aussies to switch to a better electricity plan.

“Around 10 per cent of Australians are on a standing offer contract and are missing out on hundreds of dollars in savings,” Gabaji said.

“As a rule of thumb, you should be comparing energy plans every 12 months and switching to a better deal if you can. Also, look for plans that are at least 8-10 per cent lower than the reference price.”

Here are her five tips to save on your bill this winter:

1. Shop around for a better deal. New customers will usually get better deals than loyal ones. The savings could be between $200 and $300 per year.

2. Insulate your home. When running your heater, make sure to keep all doors and windows closed to trap in the warm air. Also eliminate any sources of draughts.

3. Consider having your heater checked. Older air conditioners or heaters are less efficient and more costly to run. Also make sure it’s cleaned and get rid of any dirt and bacteria that could clog the system.

4. Switch off devices at the wall. Standby power use can cost households $100 per year. So make sure you switch off your air conditioner and game consoles at the wall.

5. Opt for energy-efficient appliances. If you have older appliances, upgrading them could save you in the longer term and keep your overall costs down.

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