Victorian Energy Providers Investigated over price gouging
It’s been a bad news week for our Victorian members this week with households facing a combined electricity and gas bill blowout of up to $310 next year as retailers raise prices.
There are a couple of factors at play according to Karen Collier from the Herald Sun. The looming closure of the Hazelwood power plant is being blamed for electricity cost spikes in January, while gas price rises are also far outstripping inflation.
All-electric customers without solar power would be stung as much as $210 a year more.
The huge hit comes in the same week the Essential Services Commission revealed 70,000 people are now in energy retailer hardship programs — an increase of 30 per cent on last year — and 61,000 Victorian households were disconnected last year.
Average price rises for default residential electricity tariffs, known as standing offers, will range from 6.5 to 11.5 per cent in January. While most customers are on discounted offers, many will face similar price increases.
FiftyUp Club’s Christopher Zinn urged families to shop around saying “most people on a standard offer don’t bother checking if they are getting value for money”
A government-ordered review of the retail market will also check if “price gouging” was occurring.
Victoria announced last week that former MPs John Thwaites and Terry Mulder will lead a review of retail power prices and how to improve the market.
