Australian regulators approve up to 9.7% energy price rises across four states

Australian households and small businesses are facing electricity bill increases ranging from 0.5% to nearly 10% starting July 1, with New South Wales experiencing the steepest rises due to higher wholesale electricity costs and network maintenance expenses. The Australian Energy Regulator (AER) cited unexpected coal-fired power station outages and increased investment in resilient infrastructure as factors driving up prices, alongside a significant rise in construction and maintenance costs for the high-voltage transmission system. The Default Market Offer (DMO) and Victorian Default Offer (VDO) act as safety nets to limit what retailers can charge those on default plans, which represent roughly 9% of households and 18% of small businesses, affecting over 1.3 million customers nationally. Price increases vary by region, with modest hikes expected in South East Queensland, South Australia, and Victoria, where some areas might see slight price drops. Consumers have been encouraged to shop around as many market offers remain below the default prices, potentially offering significant savings. These price adjustments coincide with broader challenges from supply chain constraints, workforce shortages, and the ongoing cost-of-living crisis impacting Australian households.