Energy prices in Australia have been projected to increase in 2023 by 35%, according to Alinta Energy Chief Executive Jeff Dimery. According to the Australian Energy Regulator, they expect the increase to be more like 50%, meaning that a family paying $200 a month for power can expect to pay around $300 or more.
There are several reasons for this, but it all boils down to an increase in demand and a decrease in supply, making energy much more costly for everyone involved. Let’s take a little deeper look into this issue so you can better understand why the problem is here and what can be done about it.
Supply
There are two separate issues relating to the supply end of the process. The push for renewable energy resources has caused energy producers to decrease the energy they can provide to the nation. It is a great thing to switch over to renewable energy, but it is a process that will take some time.
One of the main issues with this concept is that it costs money to switch everything over, which will need to come from federal grants. But even then, until the energy supplied by renewable resources catches up with the demand, either the nation will be short on energy or they will have to pay inflated prices for the natural resources being shipped in.
War In Ukraine
The second problem that has disrupted the supply chain is the war in Ukraine. This global disturbance has increased the cost of coal, and other natural resources, which increases the cost to the producers. This, of course, increases the costs handed down to you.
The war may not directly affect you and how you live, but it definitely affects the economy of every nation that is used to being supplied by the two countries. Until the issues in Ukraine are resolved, the prices will never go back down unless the push for renewable resources produces enough energy to supply the entire nation with a little to spare.
Compare To Save
You cannot always expect your energy provider to be looking out for your best interests, which is why every couple of months (or at the end of your contract), you need to use a comparison site, such as the iSelect electricity comparison platform. The AI-operated site will take a little information from you and send you partner offers that may work for you.
Do not ever assume that the first offer will be the best or that the cheapest offer is the way to go. You need to read through the entire offer or contract and see the details before you decide by price. This means going through all the recommendations, setting aside a few of the best options, and then picking the most affordable one.
Final Thoughts
Your energy bills will go up no matter how things work out before the new year hits. This is out of your control, so there is no need to get worked up about it. If the government does not have any plans in effect by January 1st, they will come up with one shortly, so just do your part in saving power. Set up a plan that involves lowering your personal energy consumption and needs.
Turn off the lights, purchase energy-saving appliances, insulate and repair, and always compare electricity providers to find the ones leading the charge toward renewable energy because they will be the first to achieve the goal. That, in turn, guarantees that you will have as much energy as you need, while your neighbor may still have to conserve to survive.
Sadly the ripple effect of supply and demand off balance in one area will mean consequences in many others. One of my friends has paid $825/month for rent for the last couple years. It just raised to $1000. Another friend takes a medication that keeps her cancer in remission. She just got downsized and lost her insurance. She was paying $500 for the normally $11,000 prescription. Yes. You read that right. She is trying to get on a program thats like a grant. My life is so wonderful compared to theirs. Everything has gone up in price so much its painful. But still so good.