Power Bill Pinch: Small Relief, Big Impact of Rising Network Costs

Imagine finally convincing your family to switch off the lights when leaving a room, only to find out the savings are smaller than expected. That's the feeling for many Australians facing a slight decrease in electricity bills for 2024-25, overshadowed by rising network costs.

The good news: most Australian households and businesses on the Default Market Offer (DMO) can expect a small discount on their electricity bills from July 1st. The not-so-good news: the discounts are lower than anticipated, and the benefits of cheaper wholesale electricity are being partially offset by rising network costs – the fees associated with maintaining power lines and infrastructure.

Here's a regional breakdown:

• NSW, South East QLD, South Australia (AER): Residential customers see a 1-6% decrease (except some in SEQ with a 2-4% increase). Small businesses see a 1-9% decrease. Expect annual savings of $86-$124 (households) and $292-$592 (businesses) in NSW, and ~$150 (households) and ~$734 (businesses) in South Australia.

• Victoria (ESC): Residential customers enjoy a 6% decrease (around $100 annually). Small businesses see a 7% decrease (around $260 annually).