Electricity Prices Rise Up to 9.7% Across Multiple Australian States from July

Electricity prices are set to rise significantly in various regions due to increased wholesale and network costs, with New South Wales facing the steepest hikes of up to 9.7% starting July 1. The Australian Energy Regulator (AER) confirmed that residential customers on standing offer plans in New South Wales, South East Queensland, and South Australia will experience increases ranging from 0.5% to 9.7%, largely driven by elevated fossil fuel prices, ageing coal power plants, and rising costs for infrastructure maintenance. Small business customers will also face price increases up to 8.5%, reflecting ongoing pressures across wholesale, network, and retail cost components. The AER chair Clare Savage acknowledged the difficulty of the decision amid the cost-of-living crisis but highlighted the impact of the energy transition and ageing power infrastructure on costs. Meanwhile, in the United States, Penelec customers will see a 5.1% increase in electricity rates starting June 1, attributed to a significant hike in energy auction prices caused by a drop in generation capacity. These developments underscore the global challenges in balancing energy supply, infrastructure costs, and the transition to renewable sources.