Australian households are being warned to brace for higher electricity bills over the next year, with new government documents revealing that power prices are expected to rise again – just as many prepare for a hot summer.
Briefing notes to Energy Minister Chris Bowen from his own department, recently released after months of secrecy, show officials are expecting another round of electricity price increases across several states.
The papers, though heavily redacted, confirm that energy costs remain one of the top concerns for Australian households – just behind food and grocery prices.
“Government policies have provided temporary energy bill relief to households and small businesses,” one section reads. “Still, the draft Default Market Offer points to a further significant increase in retail electricity prices next financial year.”
What’s behind the rise
The Default Market Offer, which sets baseline power prices in New South Wales, South East Queensland, Victoria and South Australia, indicates household bills could climb anywhere between 0.5 per cent and nearly 10 per cent, depending on where you live.
The department’s advice also highlights that Australia’s emissions reductions must accelerate to meet climate targets, warning that stronger action and faster renewable energy rollout are needed to meet 2030 goals.
Since receiving the advice, the Albanese Government has announced a 2035 target – aiming to cut carbon emissions by 62–70 per cent below 2005 levels – positioning Australia as what it calls a “pragmatic climate leader”.
But for everyday Australians, particularly retirees and fixed-income households, the immediate concern is much closer to home: how to keep the lights (and air-con) on without breaking the bank.
Five Easy Ways to save power this Summer
As temperatures rise, so do electricity bills – but small changes can make a big difference. Here are five simple ways to stay cool and save money this summer:
1. Use fans before air conditioning
Ceiling and pedestal fans use around 80 per cent less energy than air conditioning. Combine them with open windows in the morning and evening to keep air moving naturally.
2. Set your air-con smartly
Every degree counts! Setting your air conditioner at 24–25°C instead of 20°C can cut cooling costs by up to 10 per cent. Close blinds and doors to keep the cool air in.
3. Switch off energy-hungry appliances
TVs, computers, and kitchen appliances left on standby still draw power. Turn them off at the wall when not in use – it can save up to $100 a year.
4. Wash smart, dry naturally
Wash clothes in cold water and line dry whenever possible. Clothes dryers are among the biggest power users in summer months.
5. Check your energy plan
Compare rates and consider moving to a cheaper provider or time-of-use plan. Even small savings per kilowatt-hour can add up over summer.
As energy costs rise, a little preparation and a few simple habits can help households – especially older Australians on fixed incomes – stay comfortable and in control of their power bills.
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