Australian households are facing huge jumps in their gas bills later this week as retailers pass through double-digit price increases, threatening to worsen the cost-of-living crisis.
Origin Energy, EnergyAustralia and AGL will raise gas tariffs on Wednesday, affecting their customers across New South Wales, Queensland, Victoria, South Australia and the ACT.
Victorians are among the worst affected with average AGL usage tariffs set to rise by 24.9 per cent on variable rates, while EnergyAustralia says its average hike is 26.7 per cent – or about $480 a year.
The price increases are flowing through as retailers come under pressure from higher wholesale contract prices for gas, stemming from an energy crisis with local and international causes.
The federal government moved to intervene in the market late last year to protect families from the worst of the energy squeeze, but these gas bill increases will still affect most households.
The magnitude of gas price increases for households will vary wildly by location and provider, meaning that while some families will cop big increases, others will escape the worst rises.
For example, Origin Energy says Victorians will pay 21.1 per cent more on average from February 1, while its customers in Queensland will only see prices rise 5.8 per cent on average.
AGL has already increased prices for customers on its standing offers and on February 1 will increase rates for those on variable rate deals.
AGL customers on variable deals in NSW will pay 9 per cent more, or $78 more per year based on an average usage profile.
Customers in Queensland will see prices rise 5 per cent and those in South Australia will pay 6.2 per cent more, a spokesperson told TND.
“AGL understands that rising energy prices will place additional pressure on some households and businesses, and we encourage customers to contact us to discuss the different payment and support options we offer,” an AGL spokesperson said on Monday.
Sophie Ryan, spokesperson for comparison firm iSelect, said households are being notified of the price changes by their retailer, as required by law.
“Aussie customers facing gas prices rises due to kick in from February 1 probably won’t experience the full effect of the hike until the winter months, when many of us are typically churning through gas for heating,” Ms Ryan said.
Ms Ryan said households looking to protect themselves from rising costs should shop around for the best deals on the market, and take steps to make their homes more energy efficient.
The New Daily has previously looked into the best ways to shop around for energy deals and make your home more energy efficient before the cooler months.
“As well as comparing your gas plan and provider now, it’s a great time to think about steps to take around the home to curb your gas usage during winter to avoid a sky-high winter bill,” Ms Ryan said.
“Consider switching to energy-efficient lighting such as LEDs. They tend to use around 80 per cent less energy than regular halogen bulbs, while using well-fitted and heavy curtains or blinds to trap your desired indoor temperature can also help.”
