finance
Electricity Retailers Raise Supply Charges After Default Offer Cut
Some Australian households received notices of higher daily supply charges and lower solar export payments even as the Australian Energy Regulator reduced default market offers up to 10 percent from July. Retailers attribute the shifts to rebalancing fixed and usage charges, while a comparison service says some are lifting their lowest prices to offset narrower margins.
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Electricity retailers have sent customers notices of higher daily supply charges and reduced solar export payments, even though the Australian Energy Regulator cut default market offers up to 10 percent from July. The regulator said the reductions reflect lower wholesale generation costs as the effects of Russia's 2022 invasion of Ukraine ease and renewable output rises.
Default offers serve as a price ceiling and reference point for other plans, affecting fewer than 10 percent of households.
Russell Smith, a customer in Maroochydore, Queensland, received an email stating his daily supply charge would rise 13 percent and his solar export rate would fall from 4 cents to 2 cents per unit starting next month. Alinta Energy said it aims to provide competitive offers and notifies customers in advance of rate changes.
Origin Energy stated most customers will see lower overall bills despite increased supply charges and reduced usage rates.
Foxworthy of Bill Hero said retailers have less room to discount market offers when the benchmark price falls, prompting some to raise their lowest prices. Louisa Kinnear of the Australian Energy Council said far more customers are expected to see bill decreases than increases this year.
The Australian Energy Regulator said it will monitor retailer compliance with pricing rules and urged customers to compare plans.
