Energy regulators are allowing the 'default' electricity price to hike up by 20% - 25% from July 1.
👉 Background: Energy regulators in Australia regulate pricing for gas and electricity companies. That means these gas and electricity companies can't charge above a specific amount.
👉 What happened: Now, the regulators have announced big changes to Victoria, NSW, South Australia, and Southern Queensland: they're allowing the 'default' electricity price to hike up by 20% - 25% from July 1.
👉 What else: This will mean an increase of between $300 - $600 for households. The energy regulators said that the higher costs are largely because of higher wholesale costs globally for gas and coal.
💡The default price, also called a safety net price, is the maximum price that energy companies can charge. Energy regulators set this to protect the public from sky high energy prices.
💡Part of the energy regulator's role is to make sure that customers' needs are looked after. And electricity is an essential need that everyone needs affordable access too.
💡Either way, a jump of 20% or more in the next 12 months is just another cost for Aussies to bear.
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