Energy rate increases are here: What you need to do now

If you're an Australian energy customer, you’ve likely heard the news: energy rates are going up. It’s something we’ve all been warned about for some time, and now it’s a reality for many households across the country.

Energy providers are adjusting prices, and with rising costs of energy in both the wholesale market and other factors like inflation, it’s more important than ever to make sure you’re on the right plan. In fact, a comparison is not just helpful - it’s a must.

This article will walk you through why rates are increasing, how these changes affect you, and how you can take action to ensure that you're not paying more than you need to for energy.

The best part? Making a simple comparison today can help you lock in a better deal before the increases fully take effect.

Why are energy rates increasing?

There are several factors at play in the recent rise in energy prices across Australia. Here’s a look at the main contributors:

Wholesale energy prices are on the rise

The cost of wholesale energy, the price at which electricity is bought and sold by providers, has gone up significantly.

This is largely due to volatility in the energy markets, particularly with natural gas, which has experienced price hikes both locally and globally.

Inflation and higher operational costs

Like most industries, energy companies are grappling with rising inflation and the increasing cost of doing business. This includes higher labour costs, increased costs of maintenance, and the need to invest in infrastructure improvements.

These costs often get passed on to consumers in the form of higher rates.

Supply-demand imbalances

Weather events, supply chain disruptions, and other external factors can affect the balance between energy supply and demand.

When energy supply is tight, the cost of energy increases, which translates into higher rates for households and businesses.

How will these rate increases affect you?

If you’ve already received a notification from your energy provider, you might have noticed that your electricity or gas prices will be increasing. These hikes could make a significant difference to your monthly bill, especially for households that use a lot of energy for heating, cooling, and other daily needs.

Here’s a quick look at how these increases may impact your bills:

  • Higher energy costs: Depending on your energy provider and plan, you could see price increases of anywhere from 5% to 25% (or even more).
  • Increased monthly bills: If your energy usage stays the same, the increased rates will likely result in higher monthly bills. For families and businesses that rely heavily on energy, this could mean a considerable jump in costs.
  • Rising fixed charges: Aside from usage rates, some providers are also increasing fixed charges (the daily supply charge), which will further increase your overall energy costs.

This isn’t just about minor changes: these rate hikes could add up over time. But the good news is that there are ways to mitigate the impact.

What can you do to avoid paying more?

It’s time to take action. Now is the perfect opportunity to review your energy plan and compare your options. With rates going up, simply staying on your current plan could mean paying far more than you need to. Comparing energy plans should be a priority, and July is the ideal time to do it.

Compare your current energy plan with Compare Energy

By comparing different energy plans, you can quickly see if you’re getting the best deal for your needs. Don’t assume that just because you’ve been with the same provider for years, it’s the best deal available - that's a myth. With prices increasing, it’s even more crucial to find a plan that suits your usage and budget.

Consider factors like:

  • Energy usage: How much energy do you typically use? Are you using more than you need during peak hours? Look for plans with better rates for your usage patterns.
  • Fixed vs. variable charges: Understand whether your plan has fixed daily charges and whether switching plans can lower those.
  • Discounts and incentives: Some providers offer discounts for paying on time or for bundling electricity with gas. These small savings can add up.
  • Green energy options: If environmental sustainability is important to you, consider plans with renewable energy options, which could also have rebates or incentives.

Lock in a plan before rates go up

Many energy providers are rolling out new rates in July or August, meaning there’s a window of opportunity to lock in a plan with a better rate before the price hikes take full effect. This can save you a considerable amount of money in the long term.

It’s important to act now to avoid getting caught out by higher rates in the coming months. Once the price increases are in effect, it may be harder to find a plan that offers significant savings.

That's why you need to call the team at Compare Energy so that you can get the best rate locked in early.

Switch to a better provider

If your current provider is unwilling or unable to offer a better deal, it may be time to switch providers. With competition in the energy market, there are often better options available, especially for customers who haven’t switched plans in a while.

Some providers may offer promotional rates or other incentives to attract new customers, which can help offset the rate increase. When you call our team, we'll walk you through which providers would be best for your circumstances.

The benefits of comparing energy plans

Here’s why comparing energy plans is not just a good idea, but an essential step in protecting your wallet:

  • Save money: By finding a more competitive plan, you could save hundreds of dollars a year, even more so if you’ve been on the same plan for a long time.
  • Tailor your plan to your needs: Comparing plans helps you identify a plan that suits your usage patterns - whether that’s a plan with cheaper off-peak rates or one that offers rewards or discounts.
  • Stay in control: Being proactive about your energy plan allows you to remain in control of your spending and avoid unpleasant surprises when the bill arrives.

What should you do now?

If you're unsure about whether your current energy plan is the best deal, now’s the time to compare your options. The rate hikes are already happening, and you don’t want to miss the opportunity to lock in a better plan. July is the key month to make sure you're not paying more than you have to for your energy needs.

Here’s what you can do:

  • Compare your current energy plan: Call Compare Energy on 1300 790 106 and let our friendly, Aussie-based team take you through your options.
  • Review your energy usage: Check whether your current plan reflects your energy habits. Do you use a lot of energy during peak times? Or can you shift your usage to off-peak hours to save money?
  • Switch to a better plan: If you find a plan that offers better rates or suits your needs, it’s time to make the switch before the new rates kick in.
  • Act quickly: The time to make a change is now. Rates are already increasing, and the longer you wait, the higher your bills could go.

Need help comparing your energy plan?

We understand that navigating energy plans can be overwhelming, but we’re here to help. Call Compare Energy on 1300 790 106 today. Our team of experts can quickly help you review your current plan, compare it with other options, and ensure you’re on the best deal to save money before the rate increases take effect.

Don't wait: take action now to secure a better deal and keep your energy costs in check.