{"id":62211,"date":"2022-05-27T05:57:38","date_gmt":"2022-05-26T19:27:38","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=62211"},"modified":"2022-05-27T06:05:06","modified_gmt":"2022-05-26T19:35:06","slug":"electricity-prices-nsw-sa-seqld-mb2491","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/electricity-prices-nsw-sa-seqld-mb2491\/","title":{"rendered":"Electricity Price Rise Shock For NSW, SA And SEQLD"},"content":{"rendered":"

\"Electricity<\/p>\n

Victoria and Western Australia had already been delivered bad news on electricity prices. New South Wales, South Australia and South-East Queensland received theirs yesterday.<\/p>\n

Just to briefly recap, last week Western Australians were told electricity prices would rise<\/a> (again), harshing some of the buzz provided by the McGowan Government’s recently announced Household Electricity Credit<\/a>.<\/p>\n

Then on Tuesday this week, Victoria’s Essential Services Commission announced it had set that state’s Default Offer (VDO) prices to apply from 1 July 2022 to 30 June 2023. Average annual bills for households and small businesses on that offer will increase by around 5 per cent<\/a>; with impact varying depending on the distribution area.<\/p>\n

What Is A Default Market Offer?<\/h2>\n

A Default Market Offer (DMO, aka a Standing Offer) are contracts electricity retailers must make available to residential and small business customers who don’t opt for a market offer. It’s a safety net of sorts, ensuring those who overlooked, are too confused, or haven’t taken the time to select what may be a better offer from the retailer aren’t ripped off – too much.<\/p>\n

The DMO is meant to allow retailers to recover their costs and make a profit, while encouraging competition for better deals under market offers. So, basically it sets the stage for electricity pricing and when the DMO goes up, it’s likely market offers will also get pricier.<\/p>\n

Enter The Grim Reaper<\/span> Australian Energy Regulator<\/h2>\n

Each year, the Australian Energy Regulator (AER) sets the Default Market Offer for the following financial year in New South Wales, South Australia and South-East Queensland. It usually releases its final determination on May 1, but was given extra time this year by the then-Morrison Government to get things in order.<\/p>\n

We’re told this had absolutely nothing to do with the writing being on the wall regarding rising electricity prices and the then-Morrison Government wanting to put off the bad news until after the Federal Election. The hand grenade was dropped yesterday, leaving the newly-elected Labor Government to cop the blast.<\/p>\n

In summary, here’s what’s happening from 1 July 2022 to the DMO in SA, NSW and SE-QLD. These are % changes in nominal terms (without removing expected inflation).<\/p>\n