How to avoid Victorian energy bill increase in 2019

Energy retailers have revealed their prices next year, with one major retailer jacking gas prices up. But most Victorians are set to get a reprieve from years of surging bills — this is how.

Major retailer EnergyAustralia is jacking up gas prices for Victorian customers from January.

The increase will add an ­average $69 a year to household bills, up 4.2 per cent. Small businesses will cop a 4.9 per cent average increase, up $330 a year.

But most Victorians are set to get a reprieve from years of surging bills.

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AGL is modestly reducing both electricity and gas prices from next year, while rival ­Origin will keep them steady.

EnergyAustralia will freeze electricity prices.

The state’s three energy ­giants — which have raked in billions of dollars in revenue in recent years — said they had been hit with higher network and government “green scheme” costs.

EnergyAustralia said households could avoid the gas bill rise by switching to its ­Secure Saver plan, which will for a limited time allow ­customers to lock in 2018 rates for the next two years.

EnergyAustralia will raise gas prices and hold electricity prices flat.

St Vincent de Paul Society analyst Gavin Dufty believed the changes were “too modest”.

“For households that have been smacked with punishing price rises for years, small reductions or holding steady is not meaningful enough,” Mr Dufty said.

He urged people to shop around and compare deals.

AGL will drop electricity prices by 1.6 per cent, saving households an estimated average $23 and small businesses $60 annually. Its gas prices reduce by 0.9 per cent for residential customers, an average $11 saving, and by 1.2 per cent for small businesses, or $56.

The energy giants will give automatic discounts to customers on typically expensive default or “standing offer” tariffs, reducing bills by hundreds of dollars a year. The size of the discount, and who it applies to, differs by company.

Some smaller retailers have revealed standing offer average gas tariff increases from January ranging from 4-7 per cent for residents, and as much as 9 per cent for small business.

Their published electricity standing offer average changes range from falls of 1-7.6 per cent, to rises of 1.9-7.6 per cent, depending on retailer.

Most customers are on more competitive market offers.

Alinta Energy said it would apply its best guaranteed discount to a small number of electricity customers remaining on standing offers.

Energy retailers have come under pressure over electricity prices. Picture: AAP

Red Energy and Lumo will offer electricity customers on standing offers an automatic 10 per cent discount from January 1.

The price shifts follow fierce criticism of the industry including claims of rip-offs, dubious discount marketing, and exorbitant charges for customers who fail to pay on time.

The federal government had threatened to hit power companies with a “big stick” if they did not act.

The Morrison Government today launches an advertising ­campaign encouraging Aussies to challenge bills and hunt down a better deal so they can save up to 15 per cent.

The Coalition will spend thousands of dollars of taxpayer money convincing Australians to get a better deal for their energy, with a TV, radio and newspaper blitz.

It claims more than 458,000 households are already getting a better deal, following ­pressure on power companies to move customers off the higher-cost standing offers.

Ramping up its efforts, the Morrison Government will ­introduce new laws this week forcing big energy companies to sell assets if they don’t bring prices down. Energy Minister Angus Taylor urged them to follow the lead of firms that had cut prices, and “act in the interest of their customers”.

EnergyAustralia chief ­customer officer Chris Ryan said restricted gas supply on the east coast had raised the cost of buying and transporting gas, and the ­Hazelwood power station closure had ­increased electricity prices.

AGL interim CEO Brett Redman said the company would continue efforts to improve energy affordability and help vulnerable customers.

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@KarenCollierHS