AGL customers hit with bill shock

The energy major’s customers in NSW have been slugged with a $300 annual increase in their electricity bills.

AGL Energy has slugged its NSW customers with a $300 annual increase in their power bills.

AGL Energy has slugged its NSW customers with a $300 annual increase in their power bills as the power giant passes on soaring costs in the national electricity market.

The energy retailer, the subject of fresh takeover speculation by former suitor Brookfield, said the new charges for households on variable contracts will kick in from August 1 in NSW, representing a 17.5 per cent increase on the prior year.

AGL’s Queensland customers will cop a $275 or 18 per cent annual jump on average with South Australian bill rising by $155 annually or 8.4 per cent. Victorian households will fare better but can expect an $80 lift in their bills, up 5.6 per cent on the 2021-22 year.

Residential customers also face higher gas bills with Queensland households facing the biggest hike of $81 marking a 10.5 per cent increase, South Australia up $76 or 8.7 per cent and NSW $73 more annually or 8.8 per cent higher.

The new gas charges will kick in on July 1 for customers on standing offers and August 1 for those on variable market rate contracts.

Power and gas prices have soared in Australia this year with the surge linked to international factors such as the Ukraine war, a global gas crunch and Australia’s reliance on old coal-fired power stations.

“Any decision to change prices is based on a detailed consideration of a range of factors including wholesale prices, network changes and market conditions and the value we offer to our customers,” an AGL spokesman said.

Origin Energy, a chief rival to AGL Energy, laid out its new charges on June 10 with households on average facing an increase in their power bills of up to $268 a year from July 1.

Origin’s NSW customers will pay an extra $268 for their power on average based on a variable tariff, marking a 14.4 per cent increase on the current year.

Queensland customers will see bills increase by an average $223 or 13.7 per cent with South Australia consumers facing an extra $180 annual slug, up 10.4 per cent.

Origin, which has 4.2 million electricity and gas accounts, was the first major player to move amid a national energy crisis of high prices and tight supply.

The higher costs are within an upper band of up to 18 per cent increases under standing offers agreed by the Australian Energy Regulator through its default market offer.

The third major electricity retailer, EnergyAustralia, said it would update customers in the next few weeks with its bill charges.

“We will be announcing pricing changes for many of our customers in the coming weeks. We will inform our customers before any price changes take effect, which typically occurs between June and August each year,” an EneryAustralia spokesman said.

Alinta is also expected to provide an update on Thursday over its changes to bills.

Byron Bay junior electricity operator Enova Energy collapsed on June 21, with its CEO slamming the “diabolical” state of the energy market as broken and unable to support small retailers amid soaring prices.

The shutdown of Enova marks the third retailer to fold amid a national energy crisis which has seen the electricity market suspended, price caps imposed and the threat of blackouts due to a lack of power generation being available.

Major gas retailer Weston Energy closed its doors on May 23, sparking a rush among big manufacturers to find replacement supply contracts at inflated prices. Electricity retailer Pooled Energy, co-founded by Worley chair John Grill, appointed administrators a week later due to high wholesale prices hitting its operations.