Cost of living: Australians grim $100 power bill increase amid electricity price hike

Australians are likely to face a $100 power bill increase. Experts have weighed in on the best ways to cope with the price pain.

Aussies are set to flip the bill on rising electricity rates come July 1. Picture: AAP Image/David Mariuz

Australians have been urged to shop around on energy deals with consumers set to face a $100 increase in electricity bills.

The latest report from Australian Energy Market Operator (AEMO), which runs the electricity grid, shows residents are likely to see a $100 increase in electricity bills with wholesale prices doubling in the past 12 months.

Financial comparison website Finder has warned thousands of households will cop a hefty bill come July 1 – regardless of the election outcome.

Finder energy expert Mariam Gabaji urged consumers to shop around for energy plans before this date.

“You have two different types of energy plans on the market: those that offer fixed rates for a certain period (such as 12 months) or others that have variable rates,” she said.

“If you don‘t like switching electricity plans often in search of the cheapest variable rates, you’re likely to benefit from a fixed-rate plan instead.”

Residents can expect to see a $100 increase in electricity bills. Picture: Supplied/istock

Joel Gibson from One Big Switch – a consumer power network – said residents would juggle power price increases with skyrocketing inflation.

“This is just the beginning, unfortunately. Retailers are being very cagey about price hikes but they‘re coming, and different retailers will be impacted in different ways depending on where they source their power,” he said.

“We want anyone who has received a price hike letter to send it to us so we can paint a fuller picture and tell Australians where the biggest price hikes are.”

Australians will juggle the rising electricity prices with soaring inflation. Picture: Alix Sweeney

“If you‘re not prepared to shop around and switch this year, your power bill could end up ballooning by hundreds of dollars, on top of groceries, petrol and mortgage increases.”

Australian Bureau of Statistics figures show electricity prices went up 3.5 per cent over the year, contributing to an overall inflation figure of 5.1 per cent.

The looming power bill hike follows heated political debate surrounding rising consumer prices and cost-of-living pressures.

Both Scott Morrison and Anthony Albanese have promised to keep power prices low after annual inflation rose to its highest level in two decades.

Federal Labor has committed $20 billion for a “Rewiring the Nation” policy, which it promised would follow the AEMO blueprint for transmission projects, commonly known as the Integrated System Plan.

Prime Minister Scott Morrison pointed out an 8 per cent fall in electricity prices over the past two years, while claiming Labor’s energy policy will drive up prices.

He has previously said that his government has delivered “affordable, reliable energy”.