Love it or hate it, winter is almost here. And for many of us, that means more time at home with the heater pumping and the electric blanket on! As a result, there has been a lot of focus on energy costs lately.
This can get a bit confusing. In the space of just a few weeks, news articles telling us electricity prices are being reduced popped up followed by articles warning us to brace for higher bills this winter.
So what’s really going on with electricity prices this winter?
Default Market Offer electricity prices are falling
The Australian Energy Regulator (AER) recently announced that the Default Market Offer (DMO) is set to fall for the 2021/22 financial year. The DMO is a price limit on what retailers can charge their electricity customers in NSW, SA and South East QLD and these price reductions could save residential customers on standing offers up to $116 a year and business customers up to $441 a year.
This is great news for customers on one of these standing offers, however not everyone is on a standing/default offer. In fact, most power companies offer alternative plans that can offer cheaper electricity prices than the standing offer.
For example, Mojo Power’s All Day Breakfast plan is actually 34% less than the current reference rate in Ausgrid, NSW and 30.5% less than the reference rate in the Energex area in Queensland!*
Some experts are warning of higher electricity bills
Despite the upcoming DMO price drop, the reality is that many households will receive higher bills in winter than in previous months. In many cases, this is simply because they’re using more electricity.
However some households might also be about to start paying more for electricity during peak times.
This is because, in 2018, Ausgrid (the electricity distributor that supplies power to households in Sydney, the Central Coast and the Hunter) introduced seasonal tariffs in the form of peak rates that apply during winter and summer but not in autumn and spring. This means, as of this week, households on time of use rates will start paying a peak rate to use electricity in the afternoons and evenings.
Sick of confusing electricity prices? Pay one low rate all day every day with Mojo Power
At Mojo, two of our three energy plans come with one simple, fixed rate. This means you pay the same rate for your electricity no matter what time of day or night. So you can put your dishwasher on, bake cupcakes or even binge the latest Netflix hit on the telly... whenever it suits you.
*These offers are based on a customer who consumes 4,600KWh a year on a flat rate tariff:
Ausgrid network. The lowest annual price for Mojo is $971.00 incl GST.
AER Price incl GST $1,462.
Energex network. The lowest annual price for Mojo is $1,047.20 incl. GST.
AER Price incl. GST $1,508.
Your bill will differ based on your actual usage.