Fresh power price hike warnings as families urged to shop around

POWER bill pain is spreading as more electricity retailers say they will raise prices next year.

The closed Hazelwood coal fired power station. Picture: AAP

POWER bill pain is spreading as more electricity retailers say they will raise prices next year.

At the weekend it emerged that the state’s biggest electricity providers — Origin, Energy Australia and AGL — would increase prices by 10 to 15 per cent next year.

Now, mid-tier operators are also forecasting rises.

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Momentum Energy says it will have an average increase of 4.8 per cent for residential customers — about $86 on an average annual bill of $1800.

Small businesses face a 7.1 per cent increase.

But Momentum told the Herald Sun it would introduce a “price freeze” for two-thirds of its 92,000 customers.

Managing director Paul Geason said many Victorians were “doing it tough”, but a 50 per cent rise in wholesale electricity costs in the past year was driving prices higher.

Momentum Energy managing director Paul Geason. Picture: Kym Smith

These pressures were partly the result of Hazelwood power station’s closure, rising gas ­prices and market instability.

It was also revealed at the weekend that about 285,000 customers with the big three retailers would get discounts of $250-$720 on default power deals or standing offers, which are some of the least competitive rates in the market.

Mr Geason said Momentum had just 42 default customers, who would be contacted to be offered a different deal to avoid a 16 per cent increase to standing offer rates. “A rebate off a standing offer price may not necessarily be the most competitive offer in the market,” he said.

He said Momentum provided tariffs without pay-on-time discounts so that people got “straightforward rates”.

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