Aussie households are set to be hit by a surge in the cost of their power bills from July after the nation’s energy regulator raised benchmark prices for retailers.
The Australian Energy Regulator (AER) today said it was raising default market offer (DMO) price caps, which is essentially the maximum retailers can charge households and businesses on default offers.
As a result, default offers will increase by more than $220 per year in New South Wales, more than $160 in Queensland and more than $120 in South Australia.
The AER said the rise in the DMO was necessary given that wholesale costs for retailers have risen substantially as a result of unplanned outages, fuel costs and “peaky demand”.
AER Chair Clare Savage said the decision to raise prices was “difficult” considering millions of Australians were already struggling with a soaring cost of living.
“In setting these new DMO prices, we understand the significant impact they will have on some consumers who may already be struggling with cost of living pressures,” Savage said.