Power Bills Set to Rise in Annual Reset

Households and small businesses might not see much relief from electricity costs this year, with some analysts expecting prices to climb by up to 5% in July’s annual tariff reset. Despite recent stability in wholesale energy markets, strong network costs and infrastructure spending are keeping prices high.

Electricity prices surged by about 40% over the past two years before levelling off in 2024-25, but affordability remains a concern. The Australian Energy Regulator is due to release its draft ruling this week, with industry expectations that current standing tariffs will either hold steady or increase slightly.

The average household in NSW currently pays between $1,810 and $2,500 per year, depending on location, while government subsidies have helped offset recent increases. The Albanese government is expected to propose another round of power bill support ahead of the next federal election, after failing to meet a 2022 pledge to cut energy costs by $275 annually.

Meanwhile, broader energy policies remain a key issue. The debate continues over the impact of nuclear power proposals from the Coalition and Labor’s renewable energy transition on future electricity bills. Rising wholesale costs, which doubled in late 2024 due to extreme weather and coal outages, may also drive higher tariffs.

With energy prices shaping up to be a major election issue, federal and state ministers are set to discuss consumer impact at their next meeting. While some experts expect only modest increases, the true effect on households will depend on factors like solar adoption and contract types.

Source: Australian Financial Review, Sky News