Revealed: How much more you’ll pay for power from August

NSW households on popular variable power contracts face average bill hikes of $407 from August. Small businesses will pay an extra $590.

NSW households on popular variable power contracts face average bill hikes worth $407 from August, with energy giants writing to customers about the fresh price pain.

But the state’s two largest electricity retailers will freeze prices for battling customers on financial hardship schemes next year.

One leading social services group has now called for other major providers to follow suit and shield vulnerable families.

The Saturday Telegraph can reveal Origin Energy is the first major provider to publicise new market deals since regulated price increases were approved last month, adding 21.1 per cent to an average residential customer’s bills.

Small businesses face a similar percentage hit, which will cost an average $590 next financial year.

Origin Energy and AGL say average residential bills will increase by about 25 per cent. Picture: Ian Waldie

Origin, which supplies electricity to almost 500,000 customers in Victoria, said a range of factors had influenced the decision, including what was happening in the wider energy market.

In 2022, outages at coal-fired power stations and soaring coal and gas prices sparked an energy cost crisis that forced the market operator to introduce a price cap.

But generators were entitled to compensation for the caps and the costs from the saga, including high contract prices for generation, are now being passed on to households.

But head of retail, John Briskin, said the company would wipe up to $45m in national revenue by freezing prices at 2022 rates for households on hardship programs.

“Increasing prices is never a decision we take lightly, especially at a time many people are struggling with higher cost of living,” he said.

“We are protecting customers in our Power On hardship program by shielding them from these price changes so that they won’t be impacted.”

A spokeswoman for AGL, which is the state’s biggest retailer, said it would also help vulnerable families with $70m in customer support over the next two years.

This includes providing those in their Staying Connected hardship program with up to $400 in bill credits in winter to manage price hikes.

NSW households on popular variable power contracts face average bill hikes worth $407 from August

About 85 per cent of NSW households have market contracts for electricity and will start to receive notices of increases that kick in from August 1, or when contracts expire.

It comes amid soaring gas prices, which could add hundreds of dollars to bills for larger households this winter.

St Vincent de Paul Society policy manager Gavin Dufty said he was aware that Origin and AGL would have specific provisions to support people facing energy hardship, and “we encourage all retailers to do the same”.

“Anyone who is financially struggling with their energy bills should call their retailer immediately and ask for assistance,” he said.

Mr Dufty said people should “shop around” when coming off contracts.

He also urged people to be conscious of gas use in the colder months.

“There were significant increases announced in January and, as consumption goes up in winter, it could lead to bill shock,” he said.

The new cost of living blow follows a series of interest rate rises from the Reserve Bank that have added hundreds of dollars a month to average mortgage repayments.

May’s federal budget included a $250 bill credit for lower income customers in NSW, while a state payment of $250 is also available for visiting an energy comparison site.

Small businesses will also get $325 in bill credits from the ­federal government, a payment to be matched by the state government.