Why are energy rates still rising in 2023?
The start of 2023 has seen the cost of living in Australia continue to increase, with interest rates, energy, fuel and groceries all hit by record inflation rates.
So, why are prices still rising? Keep reading to find out more about why the cost of energy is so high and the steps you can take to protect your household budget.
1. The COVID-19 Pandemic
Since it began in 2020, the pandemic has had major impacts on the Australian and global economy, including the price of wholesale energy.
Border restrictions, lockdowns and isolation periods meant that many people and businesses relied heavily on government subsidies and support packages to stay financially afloat.
This cost the Australian government billions of dollars, money which now needs to be recouped. As a measure to avoid a recession, the Reserve Bank of Australia (RBA) has implemented 8 consecutive interest rate rises, which are passed onto households and businesses, causing the cost of living to skyrocket.
In addition, global disruptions to travel and transport during the pandemic meant that the cost of coal and natural gas rose rapidly. The expense of these primary fuel sources led to the wholesale cost of electricity hitting a record high, and many retailers were left with no choice but to pass these increases on to customers.
2. The War in Ukraine
When Russia invaded Ukraine in 2022, many nations responded with strict export sanctions. This included a sanction on Russian coal, leaving a huge global supply shortage.
With the price of coal already high due to the pandemic, this additional shortage resulted in record highs, pushing the wholesale cost of power to unsustainable levels for some of Australia’s retailers, with some smaller electricity companies closing down and others having to raise their prices to remain profitable.
3. The Gas Export Crisis
Despite being one of the largest producers of natural gas in the world, Australians have found themselves paying a premium for gas due to the global supply shortage.
This is because Australia exports around 80% of its gas, meaning we then have to buy it back from the international markets to service domestic needs.
While this is great for the profits of the gas industry, it’s not such a good outlook for the cost of our energy bills.
The government have released a plan and put in place some measures to control the cost of gas, however, many people are calling for more to be done.
How To Save On Your Energy Bills
Now that you know why your bill is so high, it’s time to find out what to do about it. Even though prices are rising, there are some steps you can take to reduce how much you pay on your quarterly bill.
1. Compare energy Australia plans and save
There’s never been a more important time to compare electricity plans to see if you could make a saving on your electricity and gas.
Contact the professionals at CheapBills to help you navigate the complicated energy market and find the best option for you. We can compare gas plans and energy bundles from our panel of providers to see if there is a cheaper option for your home. We will compare energy prices from:
– Tango Energy
– Blue NRG
– Energy Locals
Our comparison service is 100% free of charge with no obligation. If we find a plan you like, we will make all the arrangements to switch electricity and gas to your new provider, with no interruption to your service.
You can now also donate to a charity or crowdfunding campaign of your choice when you choose to Switch and Donate. CheapBills has partnered with icause to offer a brand new way to support a worthy cause. When you switch your energy provider with CheapBills, a donation will be made on your behalf to your chosen icause campaign.
2. Renewable energy
Installing solar panels at your home, including solar batteries, will reduce your reliance on expensive electricity from the grid. While there is a significant upfront cost for a solar system, you can usually opt for an interest-free loan from your retailer to make it more affordable. For a lot of people, the savings they make on their bills will offset their loan repayments. There are also government rebates available in many states to further help with the upfront cost.
3. Reduce energy usage
Many people will be shocked to learn how much energy they waste in their homes and how much energy can be saved with some simple changes. Reviewing your energy usage habits and cutting down on how much you use wherever possible can lead to some big savings.
Try some of these easy energy-saving tips and watch the impact on your bill.
1. Change to LED lights
2. Insulate your home
3. Use energy-efficient appliances
4. Switch off devices at the wall
5. Set your thermostat to the optimum temperature
4. Energy Australia Compare Concessions and Rebates
If you are struggling with your energy bills, you could be eligible for support from your state government through a concession or rebate program. Look for the following initiatives to get help with your energy bills in your state.
– Victoria – Energy concessions and benefits and the $250 Power Saving Bonus for all Victorians
– New South Wales – Energy rebates and assistance scheme
– Queensland – Electricity and gas rebates
– South Australia – Energy bill concessions
– Australian Capital Territory – ACT utilities concession
– Tasmania – Electricity concessions
Energy prices in 2023 continue to rise because of the inflation caused by the COVID-19 pandemic, increased coal prices caused by the war in Ukraine and Australia’s gas export crisis.
But despite these rising costs, there are things you can do to pay less for your bill.
1. Compare energy rates and plans to find a tariff that will save you money
2. Consider renewable energy with solar panels
3. Reduce how much energy you use by following energy-saving tips
4. Find out if you are eligible for government concessions and rebates
If you are moving house, there may be different energy plans and concessions available in your new area. You can find out more by using a professional moving utilities service, like Move-In Connect, which will compare electricity plans, gas, internet and Pay TV Australia and arrange your new connections free of charge.Sydney Unleashed is one of Australia’s premier entertainment publications exploring the latest in lifestyle trends. From Sydney’s finest restaurants, cafes and bars to the hottest in gadgets, products, and home entertainment, Sydney Unleashed is your one-stop lifestyle platform.