Latest news with #billincrease
Irish Times
03-07-2025
- Business
- Irish Times
Consumers to face higher electricity costs amid networks investment
Homes and businesses face electricity bill increases of up to €16 a year if regulators approve State companies' plans to spend billions boosting the Republic's power networks. National electricity grid operator EirGrid and ESB Networks are seeking the Commission for Regulation of Utilities ' (CRU) approval to spend €19 billion over five years overhauling the systems that transmit electricity from power plants and distribute it to more than two million customers. The CRU proposes approving total spending of €14.1 billion up to 2030, but will allow scope for increases to €19 billion, depending on the progress each company makes with its plans. Fergal Mulligan, CRU commissioner, calculates that the average electricity bill will rise by €6 to €16 a year up to 2030 as a result, but cautions that this will depend on what the companies ultimately build and 'how suppliers chose to recover network costs'. READ MORE The increases will apply to network costs, which most customers pay as a standing charge on their bills, and not to electricity itself, whose cost will vary over the period. Network charges account for about 30 per cent of the €1,733 a year that the average customer pays for electricity. Mr Mulligan acknowledged that EirGrid's and ESB Networks' plans would increase customers' bills at a time when many families face financial pressure. 'In terms of the cost to the consumer of this investment, it will be assessed on a year-by-year basis,' he pledged. The CRU is seeking responses from the public and interested parties starting today. It proposes allowing the companies exceed their allowances only if progress shows them meeting their targets. It will monitor this closely over the five-year period. EirGrid and ESB Networks plea that the system needs investment to facilitate new power stations and the wind and solar farms needed to ensure the State hits climate targets. Their plans include the connection of the 300,000 new homes the Government hopes will be built by 2030, along with new businesses and services. The total allows €890 million for a 'storm resilience programme' meant to apply the lessons learned following January's Storm Éowyn , which left many homes without power for long periods. Regulators agree with the need for investment but caution that the companies most be accountable for spending and progress. EirGrid is responsible for the national grid, which transmits electricity from power stations around the country, while ESB Networks owns the lines that distribute electricity to each customer. The CRU will allocate €11.5 billion to the networks company while EirGrid will get €2.6 billion. The regulator is responding to submissions from both under a process called Price Review 6, which covers the 2026 to 2030 period. The companies plan more than 360 projects, including 29 major undertakings. They will involve 300km of underground cables and 1,000km overhead, lines connecting offshore wind and tying the Republic to Europe.
The Australian
26-05-2025
- Business
- The Australian
Households face up to $228 electricity bill hike after AER issues final default market prices
NSW households could have energy bill increases of up to 9.7 per cent from July 1, with South Australian and south east Queensland customers facing a hit of up to 3.7 per cent, according to the energy regulator. The figures were released in the final determination of the Default Market Offer, set by the Australian Energy Regulator (AER) on Monday. The offer sets the maximum price caps for bill increases for residential customers on default plans, about 8 per cent of customers, and come into affect from the new 2025-26 financial year beginning on July 1. Households in south east Queensland will see prices increase by 0.5 per cent to 3.7 per cent, South Australians face price hikes of between 2.3 per cent and 3.2 per cent, while NSW residents will be hit the hardest, with increases between 8.3 per cent and 9.7 per cent. Prices for NSW residents were slightly higher than the hikes listed in the AER's April draft determination. NSW residents could face an annual bill hike of up to 9.7 per cent in the 2025-26 financial year. Picture: NewsWire/ Gaye Gerard Modelling by Canstar Blue estimates households on default plans could see their power bills increase by $71 to $228 over the next financial year. NSW customers with retailers who source their energy from Essential Energy, one of the state's three electricity distributors, could see their bills increase by 9.1 per cent, with the average annual bill rising from $2513 to $2741. Although the price caps only apply to the minority of residential customers on default plans, Compare the Market's head of energy Meredith O'Brien said the offer would likely result in price charges across the market. 'Whether or not you're on a standing offer, we know that households across Victoria, South Australia, South East Queensland and NSW will likely see changes to their electricity prices from 1 July as a result of today's determination,' she said. 'When the price of electricity standing offers change, so too do other plans on the market.' Energy Minister Chris Bowen acknowledged that energy bills remained 'too high,' and urged households to compare plans using platform's like the government's Energy Made Easy comparison tool. 'With energy plans that are between 18 per cent and 27 per cent cheaper than the DMO it's worth shopping around,' he said. 'We also know 80 per cent of households aren't on the cheapest energy plan they could be which is why we're making it easier for households to find and switch to better plans. Check the Energy Made Easy website or for the cheapest plans in your area.' Energy Minister Chris Bowen urged households to compare prices and switch to a cheaper plan. Picture: NewsWire/ Martin Ollman Coalition energy spokesman Ted O'Brien seized on the increases to the increase to prices, and said bills would continue to go up under Labor. 'While the Opposition acknowledges it did not meet expectations at the recent election the fundamental issues in Australia's energy market under Labor persist – prices continue to rise,' he said. 'The Coalition will take the time to listen and to get it right, but the message from Australian families remains consistent – prices remain too high and the pressure is mounting. 'Constant assurances of cheaper power from the Albanese Government have not been born out. 'Australians are asking their government a simple question today: when will these price rises stop?' Canstar Blue's data insights director Sally Tindal also urged customers to compare plans, stating consumers could save more than $400 a year. 'If you get a note from your provider telling you your electricity prices are on the rise, use it as an opportunity to check whether there's a cheaper plan out there,' she said, telling households to act before the July 1 deadline. 'Switching now should not preclude you from checking again in a few months time after the dust has settled on the price hikes, provided you're not on a plan with a lock-in contract. 'Our research shows switching from an average priced plan to one of the lowest in the market could save you over $400 a year in some cases – this for some households could be enough to mitigate the upcoming price hikes.' AER chair Clare Savage attributed the increases to the rising cost of energy production. 'We know this is not welcome news for consumers in the current cost-of-living environment,' she said. 'As noted in our draft determination, sustained pressures across almost all components of the DMO have driven these price rises, with wholesale and network costs rising in most jurisdictions between 1 per cent and 11 per cent, and retail costs between 8 per cent and 35 per cent compared with last year.' Jessica Wang NewsWire Federal Politics Reporter Jessica Wang is a federal politics reporter for NewsWire based in the Canberra Press Gallery. She previously covered NSW state politics for the Wire and has also worked at and Mamamia covering breaking news, entertainment, and lifestyle. @imjesswang_ Jessica Wang
Daily Mail
26-05-2025
- Business
- Daily Mail
Why your electricity bill is set to spike within WEEKS
Australians in one state are facing a $228 annual hike in their electricity bills with the pain likely to get worse as government-funded rebates end and more charge electric cars at home. The Australian Energy Regulator final determination report, released on Monday, had bad news for consumers, starting on July 1 as winter pushes up demand for heaters. This is based on what retailers can charge customers in NSW, south-east Queensland and South Australia during the next financial year under a default market offer. High demand and network outages were blamed for the steep wholesale prices feeding into higher retail prices, along with low levels of renewable energy as Australian governments try to phase out coal-fired power stations. 'These spot prices were partially driven by a greater frequency of high price events, which resulted from a range of factors including high demand, coal generator and network outages, and low renewable generation output,' the AER said. In regional New South Wales, Essential Energy residential customers face the biggest increase of $228 or 9.1 per cent, with the AER citing 'improved network resilience to address climate change-related risks' along with 'the integration of consumer energy resources including rooftop solar, batteries and electric vehicles'. This takes the average annual electricity bill for 2025-26 to $2,741 , which is even steeper than the $188 or 8.5 per cent increase for Endeavour Energy customers in Sydney, who will be paying $2,411. The increases in NSW were up to 6.7 per cent above forecast inflation, with more homes having a smart meter monitoring when residents used electricity. 'Retail costs have risen for all customers in each region of NSW, primarily due to increases in retailers' operating costs,' the AER said. 'Increases in bad and doubtful debt costs and smart meter costs also contributed to the overall increases.' In south-east Queensland, Energex's increases were more moderate at $77 or 3.7 per cent, or 1.3 per cent above forecast inflation to an average of $2,143. South Australians were set to see a $71 or 3.2 per cent increase, which was 0.8 per cent above predicted inflation for SA Power Networks customers, for an average bill of $2,301. Canstar data insights director Sally Tindall said the increases were bad news for customers. 'These electricity price hikes will knock the wind out of the sails for many families, just when they thought they'd turned a corner in the cost-of-living crisis,' she said. 'Price hikes of up to $228 for an average household will be too much for some families to bear, particularly as we enter one of the most energy-intensive periods of the year.' The AER projected bigger increases for customers without a controlled load, where an electrical appliance like a dishwasher can be operated at a different time to the rest of the home to save money during an off-peak period. The federal government's quarterly $75 rebates were extended until the end of December in the pre-election March Budget, where the price came off the bill without customers having to lodge an application for relief. This has seen electricity bills fallen by 9.6 per cent in the year to March, helping to reduce headline inflation to just 2.4 per cent. The AER argued its determination regarding existing customers struck a balance between 'protecting consumers from unjustifiably high prices, while also allowing retailers to recover costs'. 'Retail costs have seen larger increases in all regions,' it said. 'While this source of costs makes up a smaller portion of the total price, the rate of growth means it has contributed more than other elements to the price rises in some regions.' Wholesale power prices make up 31 to 45 per cent of the AER's default market offer arrangement on electricity bill increases, compared with 11 to 16 per cent for retail costs. Network costs made up 33 to 48 per cent of the approved price rise.
News.com.au
26-05-2025
- Business
- News.com.au
Households face up to $228 electricity bill shock after Australian Energy Regulator issues final default market prices
NSW households could have energy bill increases of up to 9.7 per cent from July 1, with South Australian and south east Queensland customers facing a hit of up to 3.7 per cent, according to the energy regulator. The figures were released in the final determination of the Default Market Offer, set by the Australian Energy Regulator (AER) on Monday. The offer sets the maximum price caps for bill increases for residential customers on standing offer plans in the 2025-26 financial year. Households in south east Queensland will see prices increase by 0.5 per cent to 3.7 per cent, South Australians face price hikes of between 2.3 per cent and 3.2 per cent, while NSW residents will be hit the hardest, with increases between 8.3 per cent and 9.7 per cent. Prices for NSW residents were slightly higher than the hikes listed in the AER's April draft determination. AER chair Clare Savage attributed the increases to the rising cost of energy production. 'We know this is not welcome news for consumers in the current cost-of-living environment,' she said. 'As noted in our draft determination, sustained pressures across almost all components of the DMO have driven these price rises, with wholesale and network costs rising in most jurisdictions between 1 per cent and 11 per cent, and retail costs between 8 per cent and 35 per cent compared with last year.' Modelling by Canstar Blue estimates annual power prices for the 2025-26 financial year will increase between $71 to $228 for households. The increase will hit NSW customers with Essential Energy the hardest, with the average annual electricity bill tipped to increase by 9.1 per cent from $2513 to $2741.
Yahoo
25-05-2025
- Business
- Yahoo
Your OG&E bill is about to go up: See the reasons behind the rising costs for customers
Customers of OG&E will soon see an increase in their monthly electric bill, thanks to rising fuel costs. The energy provider told customers in an email Friday, May 23, that a fuel charge adjustment would go into effect June 1. OG&E charges customers for the "actual cost of fuel to generate electricity," and the fuel cost can be seen on your monthly bill. OG&E cannot profit from fuel costs. "We understand any increase in bills can be difficult," the email said. "That's why we source and purchase fuel at the lowest cost possible to minimize the impact on customer bills and physically store lower cost fuel that we can use when prices increase." According to OG&E, the average residential customer will see an increase of $5.87 per month. You can learn more about how your bill is impacted by the cost of fuel at This fuel cost adjustment is just one of a few recent changes to OG&E customer bills. In March, OG&E customers saw an average increase of about $12.65 on their monthly bill, which was to account for rising fuel costs following the unusually high temperatures in October and November of 2024. This increase followed an average $9.58 monthly rate increase approved by the Oklahoma Corporation Commission that started in July 2024, which was expected to fund tree trimming and boost a senior discount for the company's SmartHours program. Aaron Cooper, OGE Energy Corp. spokesman, told The Oklahoman in February the rate and fuel increases are offset by three drops in fuel charges between November 2023 and November 2024 that over the 12-month period led to an accumulative monthly drop of $50.37. This article originally appeared on Oklahoman: OG&E bills going up again: See what's behind the rise in cost
