Electricity prices are rising and your hip pocket is becoming lighter


Did you receive a letter like this recently from your energy supplier?

My electricity price has just increased by 13.6% for the daily charge and 7.7% on average per kilowatt hour used and I am guessing I am not the only one who has seen this rise.

The Australian Energy Regulator (AER) approved a rise of 1.5% from July 1 which would see a $10 to $15 increase for households in city regions and an increase of $30 to $35 for those residing in the country per year.  Yet a far more significant electricity price increase has been forced upon us every day consumers.

So what exactly are you paying for in your electricity bill?

There are many costs involved in providing electricity and gas to you home or business. These costs include:
– Retail costs making up about 10% of your electricity and 20% of your gas bills.
– Wholesale costs making up about one third of your electricity and gas bills
– Network costs making up about half of your electricity and gas bills
– Green costs making up about 5% of your electricity bill.

You won’t see these words on your electricity bill however they all make up the total cost of your energy. Your bill will show you two types of charges:
– Daily supply charge which is the money you pay each day to get electricity and gas to your house
– Usage charges which is the money you pay for the electricity and gas you use.

Why are electricity prices getting more expensive?

In Australia, the biggest reason for electricity price rises are network charges. Network charges cover the cost of replacing and upgrading electricity poles, wires, gas pipelines and other equipment. Other reasons for rising energy prices vary across Australia with some regions attracting a higher wholesale energy cost than other regions.

Are you noticing a rise in your electricity prices? We would recommend you to consider taking some of these first steps by asking yourself:
– Are you using energy differently?
– Have you changed the way you heat your house in winter or cool your house in summer?
– Does your electricity plan have a seasonal tariff?
– What time of the day are you using most of your energy and are these in or out of peak times?
– Are you adapting energy saving habits in your home or business?

Electricity prices are not out of your control… it’s your turn to take charge

– Find the right energy supplier for you. Discuss their different plans and know their off peak, shoulder and peak price variations.  Suppliers rely on you not proactively seeking these answers and hope for your continued business whilst rising their prices.
– Explore renewable energy options that are available to you. Even winter days can see full sun filled hours with minimal cloud coverage contributing to substantial clean energy production from solar systems.
– Install energy saving household/business solutions for light fittings and fixtures.
– Alter your everyday habits, especially in winter months.  This typically is when you notice a price surge from heating appliances.

Here are some simple and practical tips you can use every day to help cut your electricity prices:

What’s next?

We are committed and dedicated in seeing Australia be a cleaner and more sustainable country and the only way for this to happen is to educate and drive the change makers (us!) to deliver this output.

As a company with excellence in both the electrical and renewable energy sectors we have a specialised view of knowing how each sector can complement one another, including simple clean energy behaviours you can adopt whether you are in a single household or a large commercial business.  Both contexts can bring changes to your electricity prices whilst benefiting the wider community.

Connect with us to hear about how you can change your hip pocket and be part of Australia’s renewable energy revolution.

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