Electricity prices to increase, but some customers to be shielded

VICTORIA’S biggest energy retailer has signalled an electricity price increase for the new year, but there’s good news for their “standing offer” customers hoping to get a reprieve.

Victorian electricity prices are changing from January. Picture: iStock

VICTORIA’S biggest energy retailer is the latest to confirm plans to push up power prices in the new year.

AGL has revealed its default electricity tariffs are set to jump an average 9.5 per cent from January 1 — but pledged to shield many of its standing offer customers from the rise.

St Vincent de Paul Society energy expert Gavin Dufty expected market offers, which most customers are on, to increase by a similar percentage amount.

The Herald Sun understands that for an average household, annual bills will rise by about $140.

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Many Victorian energy retailers will raise prices in the new year. Picture: iStock

AGL has more than 1.1 million residential electricity and gas accounts in Victoria.

It stressed that many of its standing offer customers would be protected from next year’s rise due to additional discounts.

Key rivals EnergyAustralia and Origin Energy recently foreshadowed new year default power price hikes of 14.4 to 14.9 per cent.

However, about 285,000 customers with the “big three” retailers are to get $250-$720 refunds on default plans or standing offers in a deal brokered by the Andrews Government.

AGL said non-concession households who had been on its standing offers for two years or more, and concession standing offer customers, would have rate rises rebated for 12 months.

Across Victoria, about 10 per cent of electricity customers are on standing offers, which are typically among the most expensive on the market.

AGL says many standing offer customers will be shielded from a looming price increase. Picture: Ian Currie

AGL chief customer officer Melissa Reynolds said its electricity price rise reflected a large wholesale price increase, and fully took into account some network cost reductions.

“We have worked hard to minimise these price increases ...” Ms Reynolds said.

“We understand that prices are high and that more needs to be done for energy affordability. This includes ensuring customers understand pricing offers, giving customers the tools they need to understand their energy usage, and helping them with energy budgeting.”

The Essential Services Commission recently blasted Victoria’s increasingly complicated and confusing energy market, including “largely meaningless” discount advertising.

Ms Reynolds said AGL was committed to moving away from marketing offers using discounts.

@KarenCollierHS