Gas bills are going up, up, up from 1 August in these states. Sigh.
It isn't bad enough that we're having a tough time with high electricity bills, but now gas prices are on the rise too by more than $100+ for the year.
Households in NSW, VIC, QLD, SA and the ACT will be hit by steeper gas bills as major retailers cite network and operating costs for increasing prices in another cost of living bite.
In case you don't read until the end, the key takeaway if you've been impacted is to compare plans or negotiate with your current provider so you can soften the blow.
Gas bills going up from AGL
AGL's let market and standing offer customers in VIC, NSW, QLD and SA know it'll be hiking gas prices from 1 August by as much as $134.
A standing offer is what all retailers are obligated to make available to energy consumers. A market offer is usually more competitive and cheaper. It's why households are always encouraged to shop around for market offers at least once a year.
The annual gas price increase on average is going to be:
- NSW: 8.2% or $71
- VIC: 8.6% or $134
- QLD: 5.1% or $42
- SA: 5.4% or $51
AGL's price changes are based on market conditions and the cost of providing gas to customers, including wholesale, network and environmental costs.
Origin Energy gas price changes
Origin Energy's increasing gas prices on average by up to $125.
Customers on both standing and market offers in QLD, NSW and SA were informed of price changes last month. This also includes standing offer customers in VIC.
From 1 August, VIC market offer customers and households in the ACT will be hit by higher costs too.
Similarly to AGL, an Origin Energy spokesperson told Finder that its "changes to natural gas prices are due to a combination of higher network costs and retailer operating costs across different network areas."
- NSW: 8.1% or $83
- VIC: 7.3% or $125
- QLD: 4.1% or $34
- SA: 6.2% or $66
- ACT: 6.5% or $80
EnergyAustralia informed standing offer customers of price changes to gas last month. It will be sending out emails to market offer customers this week. We'll know more about the exact figures once the comms are out.
This is a lot to take in. What's happening with electricity and gas bills in a nutshell and how do I save?
Let's get into the savings bit first because really, what else matters?
- Shop around, and find the cheapest plan for both electricity and gas. And use that information to either negotiate with your energy provider or simply leave.
- Contact your provider for hardship assistance if you're having trouble paying bills on time. The major retailers have millions of dollars set aside to provide support over the coming year.
- Be mindful of how you consume energy. For example, heating and cooling can account for up to 40% of a household's energy bill. It's cold, we know, but consider how much hot water you use and if you really need to turn on the heater for hours at a stretch. You can find out how much it costs to run a heater to manage expectations and how to DIY your home for better insulation. Spoiler alert: $257 on average for a single heater during the winter season.
- Don't set and forget about your energy bills. Whether they come in once, twice or thrice a month, see how much you're paying. Compare plans every 6-12 months to figure out if you can find savings elsewhere.
What's happening with the pricing chaos on the east coast?
Electricity prices haven't dramatically increased this year as they have in the two years prior, but they haven't really come down either and remain high.
In the lead up to 1 July electricity price changes (which happen annually), some customers were informed their bills were going up.
This was all a bit confusing given we were told they're more or less staying stable.
See the thing is default offers also known as standing offers have remained more or less stable. These are regulated but also more expensive.
Market offers can be changed at a provider's discretion and can sometimes go above the default offer price.
The gas market isn't regulated and there is no benchmark pricing. Price changes can be quite varied based on the provider and their contracts for sourcing gas, and where a customer is based.
Customer reactions coming in strong
An impacted customer reached out to me last month and said they had received an email from ENGIE (formerly Simply Energy) about electricity price hikes of as much as $120 for the year.
And Red Energy also informed them of their gas prices going up.
It was a double-edged sword that had him and his family of three fretting.
They have since shopped around and found cheaper rates elsewhere to soften the blow.
You can do the same! Start by entering your postcode and comparing energy plans in a jiffy.
Do you shop around for energy plans frequently? Then taking advantage of a sign up deal for bill credit could help you save even more.
