Power price rises add $465 to hip-pocket pain

RECENT price rises have added up to $465 to an average Victorian household’s annual electricity and gas bills, St Vincent de Paul analysis reveals.

RECENT price rises have added up to $465 to an average Victorian household’s annual electricity and gas bills.

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Residents in Melbourne’s east, southeast and bayside suburbs copped the biggest new year price sting for combined costs, Society of St Vincent de Paul analysis reveals.

Most retailers increased prices in January, largely blaming higher wholesale costs.

Bills jumped an average 10-16 per cent for electricity and 5-16 per cent for gas, depending on supplier and location.

Vinnies policy and research manager Gavin Dufty said many families could expect to pay, on average, about $3000-$3400 in combined energy costs this year.

All-electric homes would shell out about $2200-$2600 on average, he said.

Customers are being urged to shop around and demand a better deal, with savings of several hundred dollars often achieved.

Vinnies policy and research manager Gavin Dufty.

The difference between best and worst discounted electricity market offers, which most Victorians are on, is typically up to $670-$1090 a year, depending on location.

Gas customers on inferior market offers can save up to $670-$800 annually from switching.

More than 285,000 AGL, Origin and EnergyAustralia customers on costly non-discounted electricity deals are getting rebates this year to offset price increases.

Mr Dufty said all consumers should investigate and compare offers.

“The first thing to do is to put the squeeze on your current retailer to make sure you are getting the best deal they have,” he said.

“The trick is to be polite but firm on the phone.

“Don’t be afraid to change as loyalty is not rewarded. And make sure you are getting a concession if you are entitled to one.”

In January, bills jumped an average 10-16 per cent for electricity and 5-16 per cent for gas, depending on supplier and location.

According to the report, combined annual electricity and gas default tariff costs will jump by up to $415-$465, depending on area.

All-electric household bills will climb by as much as $315-$330. Households in Victoria’s north using both electricity and gas have the state’s highest energy bills.

Mr Dufty said average consumption bills varied by location due to differences in poles, wires and gas pipe distribution costs, and competitive pressures.

The report estimates the average retail cost and profit component of an annual electricity bill is $850 for default “standing” offers; $530 for market offers with pay-on-time discounts; and $70 for solar.

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