July 1. This is the date that the price of your electricity might increase.
According to the Australian Energy Regulator, the price of electricity for 600,000 households is about to increase by between 20% and 25%. The households that will be impacted by this change will be in South Australia, NSW and South East Queensland.
This electricity price increase is happening because:
- Some coal plants have been offline.
- Too much of our gas gets exported.
- Our renewable energy game is weak.
However, the Australian Energy Regulator has stated that this situation could’ve been worse. As per their CEO, Clare Savage, electricity prices might have increased by 50% if the Federal Government didn’t create a price cap in 2022.
Additionally, Savage claimed that the Federal Government’s new energy rebates scheme will protect some folks from feeling this spike.
“They’ll receive a $500 rebate on their bill, the price rises we’re talking about today are mostly less than that,” said Savage. “So in most circumstances, those eligible customers won’t experience a price increase this year.”
Why This Electricity Price Increase Will Be Yikes
As it stands, the Australian Energy Regulator is trying to downplay the severity of this situation. Things are bad, folks. The price of electricity is going to make some lives super-duper bad.
First off, the government’s new rebates scheme is only going to help a limited number of households. To be eligible for this scheme, you’ll need to have a concession card or be a member of one of the right government programs.
This means that some middle-class families and some lower-class families are about to feel a big bump. The Aussies struggling to pay their grocery bills are going to be dragged through the mud.
What’s more, June 1 is the first day of winter. A brutal winter. A “use a heater or freeze” sort of winter. Some families will now be forced to choose between shivering to death or going broke.
What a mess, fam. What a devastating cost that we’ll brunt.