Gas and power prices in double digit surge at EnergyAustralia

EnergyAustralia is passing on price increases of $360 a year to customers in some states amid what it says is an ‘unprecedented energy shock’.

Gas and power prices are set to surge for EnergyAustralia customers, with the retailer and generator announcing double digit price rises for most states and territories.

EnergyAustralia said the price hit was being driven by costs in the wholesale gas and electricity market which had “more than doubled” in the past year in some states, as supply issues pinch.

The price rises on gas and electricity set to take effect in August will be strongest in Queensland, while Victoria will see the smallest rise.

Queensland customers will see power prices rise 18.9 per cent, up $367 a year.

New South Wales customers will see power prices rise 17.9 per cent, up $362 a year.

This will be followed by South Australian customers, who will see power prices rise 14.9 per cent, up $312.

Residents of the ACT will see power prices rise by 13.3 per cent, up $259 a year.

Victorian power prices will rise 5.5 per cent, up $111.

EnergyAustralia chief executive Mark Brownfield said the price changes reflected a doubling of wholesale electricity and gas prices.

Business customers will see the steepest rise in Queensland, up 18.9 per cent, followed by South Australia where prices will rise 12.9 per cent and NSW up 12.3 per cent.

Victorian businesses will be hit buy a 5.8 per cent price rise, followed by the ACT with a 4.9 per cent rise.

Gas prices will also surge, with tariffs for customers not on fixed rate price contracts set to lift 7.9 per cent for South Australia and 8.9 per cent for NSW and the ACT.

EnergyAustralia chief executive Mark Brownfield said the price changes reflected a doubling of wholesale electricity and gas prices.

“The only solution to higher electricity prices is an increase in the supply of power. The fundamental issue is that coal and gas are in short supply. You can see that from the export prices over the past year, with coal up 243 per cent and gas up 148 per cent,” he said.

“Australia is in the midst of an unprecedented energy shock and our job as a generator and a retailer is to keep pumping power into the system to support our 2.4 million customer accounts, including those who may be doing it tough.

The move to lift prices comes after EnergyAustrlia flagged a profit warning in June amid a number of outages at its generation sites which pushed it to purchase power in energy markets.