AGL, Origin Energy hike prices by up to $267 in 4 states – how to avoid it

Posted:
News
AGLOriginenergypricehikes_1800x1000

The two energy giants have confirmed electricity price hikes starting from 1 July 2025, as the federal government promises to crack down on price gouging, and new rules limiting price increases to once a year are proposed.

AGL and Origin Energy have announced price changes for their residential market offers, affecting about 8 million households across Australia.

This follows regulators setting new benchmark electricity prices for 2025–2026, which take effect on 1 July 2025.

There are no benchmarks for gas prices, but costs are reviewed around this time of year as well.

Navigate to whichever section you want to read first.

What's a default offer?

The Default Market Offer (DMO) is also known as the reference price or benchmark price in NSW, SA and South East Queensland. In VIC, it's known as the Victorian Default Offer or VDO. It acts as a reference price so customers can compare different deals in the market. It's also there as a standard retail offer for those who don't want to engage in the retail market, that is shop around for energy plans and deals.

AGL energy prices will go up by $110 to $267

Here's what the yearly price increase looks like for AGL customers across these four states.

  • NSW: $267 (13.5% increase)
  • South East QLD: $169 (7.5% increase)
  • SA: $172 (7.8% increase)
  • VIC: $110 (6.8% increase)

Most price hikes start on 1 July, with VIC following on 1 August.

AGL's average annual price changes reflect a weighted average across its variable rate customers, with individual bill impacts varying based on product, location, tariff type, and usage. Prices quoted exclude GST.

"AGL is committed to supporting customers experiencing cost-of-living pressures with $85m of the $90m FY24 and FY25 Customer Support Package delivered to date, and we will continue to deliver programs to support our customers over the next 12 months," said an AGL spokesperson.

"We encourage customers to seek help early to discuss the different payment and support options we offer."

Origin Energy is raising electricity prices by $72 to $237

Here's what the yearly price increase looks like for Origin Energy customers across these states and territories:

  • NSW: $216 (9.1% increase)
  • South East QLD: $72 (3.1% increase)
  • Regional QLD: $72 (3.8% increase)
  • SA: $122 (5.5% increase)
  • ACT: $237 (10.3% increase)

The pricing decision for Victoria hasn't been confirmed yet, since changes won't kick in until 1 August. That's also when price hikes will hit the ACT. For all other states, prices are going up on 1 July.

"There are simple ways customers can take control of their energy and potentially save – check you're on the best plan, use the Origin app to track your usage, and take advantage of benefits like discounts on fuel and other everyday expenses," said Origin's head of retail, John Briskin.

"For customers needing extra assistance, our Power On program provides a range of support options, including access to flexible payment plans and financial counselling services"

How do I avoid bill shock as energy prices rise in Australia?

Before we jump into that, there's something important to remember...

AGL and Origin Energy aren't the only retailers that will be raising prices.

The majority of popular providers we track - including Alinta Energy, ENGIE, Red Energy, Lumo Energy, Energy Locals and more - are sending customer notices about upcoming price changes.

This applies to both electricity and gas plans. While there may not be benchmark prices for gas, annual pricing reviews usually happen around the same time.

So here's some advice:

  • You might be tempted to compare energy plans right now, but there's probably no use comparing and switching so close to 1 July or 1 August, depending on where you're based.
  • That's because the changes are so widespread across so many providers, you won't get an idea of who has the cheapest plans until the new prices come into effect.
  • The cheapest option won't be as cheap as we'd like, but it's really about avoiding whoever ends up being the most expensive.
  • Depending on which state or territory you're in, wait until after 1 July or 1 August to compare energy plans.

Price gouging crackdown and new rules to limit price hikes to once a year

First, energy minister Chris Bowen has promised to make changes to how benchmark prices (or default market offers) are set in NSW, QLD and SA.

"The Default Market Offers was intended to act as a benchmark price to stop the worst forms of price gouging, while leaving the job of putting downward pressure on prices to competition between energy companies," the energy minister said, according to The Guardian.

"However, I'll be frank. I don't think it's working that way and reform is needed."

Second, the Australian Energy Market Commission, which looks after the electricity and gas markets in NSW, QLD, SA, TAS and the ACT, has proposed new rules to protect customers:

  • Restrict retailers from increasing prices on market offers to once every 12 months.
  • Remove high penalties for not paying bills on time
  • Restrict vulnerable customers from being charged fees besides network costs
  • Protect customers from being charged more for staying loyal by making sure they never pay above the benchmark price when their energy plan's discounts or benefits change or end.
  • Ban retail fees for vulnerable customers and cap fees and charges at fair, reasonable levels for everyone else.

Ask a question

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms Of Service and Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site