Energy Costs: How to Avoid Power Price Increases?
Overall, living expenses in Australia have risen due to rising inflation, but the cost of cheap electricity providers Sydney stands out the most.
Gas and electricity prices are already rising; according to the government budget presented in October, retail power rates will increase 20% in the second half of 2022 and 30% in 2023 and 2024.
How can customers influence renewable energy adoption and lower their energy bills? Why is the cost of power increasing?
What Causes the High Cost of Energy?
Joel Gibson, author and campaign director of One Big Switch, claims that "everything that could have gone wrong for our household energy bills has gone wrong in the past year or two." "Kill costs" is his moniker.
As countries recovered from COVID-19, demand for black coal and gas increased, with the war in Ukraine also playing a part. As a result, wholesale prices increased significantly.
According to Gibson, wholesale energy prices have tripled in the last four years. While the consequences of these increases in utility bills have been gradual, retail rates jumped by roughly 15-20% during the winter.
When those additional hikes are combined with what the government anticipates, "you get about a 56% increase in electricity and a 44% increase in gas [prices]," Gibson adds.
"When you put it in monetary terms, it's pretty scary—for an average household, that adds up to $1300 extra over 18 months."
How to Reduce Your Energy Bills in Six Simple Steps?
Compare gas and electricity plans on the market by hundreds of dollars if you live in a state where you can switch providers," he says. "You're being overcharged if the price you're paying exceeds the government reference price."
It only takes comparing rates with Victorian Energy Compare to obtain a $250 rebate for Victorian residents. Energy Made Simple is a government website that allows residents and businesses in New South Wales, Queensland, South Australia, Tasmania, and the Australian Capital Territory to compare energy prices from various providers.
1) Keep an eye out for discounts and specials.
Most states and territories provide energy refunds to low-income families, pensioners, and concession card members.
Changes like switching from halogen to LED downlights or installing energy-efficient home appliances may qualify you for incentives from some companies. Visit www.energy.gov.au to learn about possible rebates and concessions.
2) Be cautious of vampire power.
Electricity is utilized by electronics even when turned off and plugged in, something you may be unaware of. This is what we call "vampire power" in our sector.
"At one point, I received a bill from one of my retailers that showed me where all the power was going, and it was 15% all from standby appliances, so those can add up," he says.
3) Examine your sales tax.
Examine your bill to determine whether you have a single rate or a time-of-use tariff. Unlike time-of-use tariffs, which account for periods of higher and lower power costs, single-rate tariffs charge a fixed price regardless of the amount of energy consumed.
Turning off appliances during non-peak hours can help save money for households with time-of-use tariffs.
4) Things that require a lot of electricity should be avoided.
According to Mr. Gibson, the top energy consumers and wasters are pool filters, heaters, heating and cooling systems, and water heaters.
By making better use of this equipment, you can save money. Some ideas include activating environmental settings, setting consumption limits, and turning them on during off-peak hours.
Similarly, hang your clothes to dry rather than placing them in the dryer, and avoid running the dishwasher or washing machine when the water level is halfway complete.
5) Improve the Energy Efficiency of Your Home
Installing or upgrading solar panels may be more cost-effective than failing to insulate homes and seal windows and doors. It is also critical to consider the energy efficiency of any new or updated appliances.
6) Reevaluate Gas Prices
According to Gibson, when upgrading or replacing existing appliances, homeowners should consider acquiring electric appliances rather than gas ones because the cost of electricity is currently substantially cheaper than that of gas.
Because of its low cost, gas was once the preferred fuel for heating, cooking, and water heating, but times have changed. He claims that, in the long run, converting to electricity and powering your HVAC system with solar energy will be the most cost-effective option.
