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Electricity prices have been a hot topic in households across the ACT and NSW. Recent reports highlight significant price increases, making it essential for residents to understand the market trends and learn practical ways to reduce their electricity bills. Let’s dive into the key developments and actionable insights to help you manage your energy costs effectively.
The Australian Energy Regulator (AER) and the NSW Independent Pricing and Regulatory Tribunal (IPART) released their reports in energy affordability and we have outlined the key aspects of these reports to help inform you.
1. Sharp Increases in Electricity Prices
Electricity prices have risen significantly in both ACT and NSW due to:
• Rising wholesale energy costs driven by global fuel price increases.
• Higher network charges reflecting infrastructure investments.
• In NSW, median market offer prices increased between 16% and 19%.
2. Energy Affordability: A Mixed Picture
While government rebates and concessions have cushioned some households:
• Low-income families benefited the most, with affordability improving slightly for those receiving assistance.
• Over 50% of NSW households report concerns about affording electricity in the future.
3. Switching Behaviour Can Save Money
Switching electricity plans can result in substantial savings:
• In NSW, households on the median flat-rate plan could save up to $350 annually by switching to a cheaper offer.
• Small businesses might save as much as $750 annually. However, many customers face challenges like complex tariff structures and limited access to user-friendly comparison tools.
1. Switch to a Better Plan
• Use tools like the Huglo Electricity Plan Comparison website to compare offers.
• Look for plans with lower tariffs or discounts on usage charges.
• Ensure you understand your current energy usage to select the most cost-effective plan.
2. Leverage Government Rebates and Concessions
• Check eligibility for programs like low-income household rebates or energy hardship support programs.
• Contact your electricity retailer to explore available discounts or concessions.
3. Optimise Your Energy Usage
• Invest in energy-efficient appliances to reduce consumption.
• Adopt simple habits like turning off unused appliances and using off-peak hours for high-energy activities.
• Consider installing solar panels or batteries to generate and store your electricity.
4. Understand Tariff Structures
• Flat-rate plans offer consistent pricing but may not suit everyone.
• Time-of-use plans can save money if you can shift usage to off-peak hours.
• Be cautious with demand tariff plans, as these can lead to higher bills if not managed effectively.
5. Engage with Your Retailer
• Request a review of your plan to see if you’re on the best available offer.
• Inquire about flexible payment options or tailored hardship programs if struggling with bills.
As the energy market evolves, staying informed is key to managing costs. While price increases may persist, proactive steps like switching plans, optimising usage, and leveraging support programs can significantly reduce the financial burden. Take charge of your energy consumption today and secure a more affordable future.
