Electricity prices set to soar 24 per cent: Here’s who is worst affected in NSW, SA, SE Qld

Australian households will face steep electricity price hikes in the coming months as the country’s energy regulator flags rises of about 24 per cent in some areas. 

But the increases will be less steep than those foreshadowed before the government stepped in to cap coal and gas prices in an attempt to rein in skyrocketing power costs. 

The Australian Energy Regulator on Wednesday released its draft default market offer decision for the 2023/24 financial year, which foreshadowed residential electricity price increases of between 19.5 and 23.7 per cent depending on the state and provider. 

The default market offer represents the maximum price energy retailers can charge residential and small business customers in NSW, South Australia and southeast Queensland.

The vast majority of customers are on lower, discounted rates. 

The regulator said default offers for residential customers in NSW were expected to increase by between 20.9 per cent and 23.7 per cent, while prices would be up nearly 20 per cent in southeast Queensland and 22 per cent in South Australia. 

It estimated small business customers could face price increases of between 14.7 per cent to 25.4 cent depending on their regions and providers. 

Without the energy market intervention, it had told the government the residential offer could increase by more than 50 per cent in some regions. 

Energy Minister Chris Bowen said the government had shielded Australians from the worst of predicted electricity price rises, but the predicted increases would still be a challenge for families facing soaring living costs. 

‘The government, faced with large increases in the (default market offer), urgently acted to curb spiralling prices of gas and coal and shield Australian families and businesses from the worst of these energy price spikes,’ he said. 

Mr Bowen said the government’s short-term plan for energy price relief included consumer and small business rebates, while in the longer-term it was pushing for increased renewable energy in the grid.