AGL raises energy prices by 18% for households from 1 August. Time to switch?
Households in NSW, VIC, QLD and SA are staring down the barrel of an up to $298 energy price hike for the year with AGL.
Starting today, 1 August, AGL will officially raise energy plan prices for customers in 4 states.
The annual average price increases for AGL customers on a variable rate market offer are as follows:
| State | Electricity increase | Gas increase |
|---|---|---|
| NSW | 17.5% or $298 | 8.8% or $73 |
| VIC | 5.6% or $80 | 5.6% or $80 |
| QLD | 18% or $275 | 10.5% or $81 |
| SA | 8.4% or $155 | 8.7% or $76 |
- Good to know. Around 85% of AGL's customers are on a variable rate or fixed rate market plan. Those on a fixed rate will not be impacted. Check your plan details or call AGL if you aren't sure what type of energy plan you're on.
This price hike comes just a month after AGL increased its gas prices for NSW customers by 8.8% on 1 July.
Whether you're still with AGL or another retailer, compare energy plans to get on the best deal available to you. Get started here.
What about other energy providers?
Since the annual 1 July energy price reset, many retailers have already increased prices or they're still carrying out price hikes.
Human nature is such that until you actually receive the first bill and see the increase for yourself, you might not take action otherwise.
Origin Energy already increased its prices on 1 July. NSW customers on a variable rate plan were hit by a 14.4% (or $268) increase. Queenslanders saw a 13.7% ($223) rise and South Australians were hit by a 10.4% (or $180) increase.
EnergyAustralia has also been updating its plan pricing since 1 July, with more price changes coming today (1 August) and then later on 1 September.
Smaller retailers have been forced to increase their prices a lot more drastically. Or they've had to shut down.
For example, GloBird Energy's plan prices are well above the reference price (30% plus).
So, how do I start comparing energy plans?
It's more important than ever to compare and switch energy plans if you haven't done so already. This is regardless of whether you're with AGL or another energy provider.
- Understand what a reference price is before you start comparing energy plans. The reference price is a benchmark set by the government to help you compare energy plans. You should avoid paying more than the reference price.
- Call your current provider and find out if it can put you on a cheaper plan. Ask if it'll be increasing prices if it hasn't already informed you about upcoming changes.
- Consider variable rate plans that are 10% below the government reference price, a benchmark that helps you compare energy plans.
- Look out for a fixed rate plan that's anywhere below the reference price. These are a rare find but finding one means you can lock in rates for 12 months.
Are higher energy bills here to stay?
Last week, the energy crisis was once again put into perspective.
The Australian Energy Market Operator's (AEMO) latest report said the worst could still be ahead of us as wholesale electricity prices reached a new unprecedented high.
Wholesale electricity prices make up 30–40% of a household's energy bill, meaning the impact will fall on customers at some point.
Read about AEMO's latest report here and what it might mean for your energy bills.
