The last of the three energy retail giants has revealed its new prices, with Origin announcing it will increase electricity prices by 16.1 per cent – or $310 a year for the average household – from July 1.
This means residential customers in NSW with either AGL, EnergyAustralia or Origin – which control more than 90 per cent of the state's retail market – will pay 17 per cent more on average for electricity next financial year. Last year, the jump was 8 per cent.
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However, an EnergyAustralia notice sent to a Randwick family on a basic plan shows that all electricity charges, whether for the first 11kWh of peak usage per day, the next 11kWh, or the balance, have been standardised to 32 cents per kWh, meaning the family is facing a shocking 29.2 per cent increase.
The announcements come as a new report by NSW Council of Social Service asserts that skyrocketing costs for the essential service will push "many more households [to a] crisis point".
Its survey of 440 people living below the poverty line found 36 per cent were forgoing dental treatment, 25 per cent were cancelling trips to the doctor, and 22 per cent were skipping a meal, just to stay on top of energy bills.
"Having reduced their energy usage below acceptable community standards, we heard about people then getting into debt, selling personal items, and going without a range of household essentials just to keep the lights on," said NCOSS chief executive Tracy Howe.
NCOSS is demanding the government quarantine funds from the lease of electricity network assets to fund energy efficiency updates for vulnerable households; begin overhauling rental tenancy laws to improve efficiency standards of properties; and increase awareness and availability of vouchers and rebates.
"To see families in our state struggling to put food on the table because of power bills is simply unacceptable," she said.
Origin, echoing its rivals, blamed the hikes on Australia's transitioning energy market and rising wholesale electricity costs. It claimed its prices were competitive.
"We are protecting our most vulnerable customers from rising power prices, by ensuring those in our hardship program will not pay this price increase," said Jon Briskin, Origin's head of retail.
Origin has lifted its gas price by 8.5 per cent – or $77 a year – on average for residential customers, and 6.3 per cent – or $343 a year – for small business customers.
On average, the three energy majors have increased gas prices for residential customers by 8.1 per cent.
It's understood EnergyAustralia standardised its electricity charges to 32 cents per kWh because of the Australian Energy Regulator's (AER) recommendation that "poles and wires" distribution networks replace the sliding scales of rates or blocks, that depended on consumption, with flat tariffs.
An EnergyAustralia spokesman said: "The move to standardised electricity tariffs reflects a change in charges we incur from the poles and wires distribution companies."
St Vincent de Paul Society's Gavin Dufty said this was a red herring and households deserved to know about the material impact of the price rises, not the regulatory mechanisms.
"Families will be under greater stress and may not be able to pay by the due date and get threatening letters, which means more people will not only face bigger bills but lose their pay-on-time discounts," he said."There's an even bigger cost burden because of the ways companies have structured their retail offers, and if they were truly concerned about affordability, they will rethink the structure so people don't have to pay additional charges."
The price increases follow the release of the long-awaited review of Australia's electricity market by chief scientist Alan Finkel.
The report outlined a plan to reduce emissions, improve reliability and lower power bills, but the Clean Energy Target has reportedly caused a rift in the Liberal Party.
Public Interest Advocacy Centre's Craig Memery said the government needed to adopt Dr Finkel's recommendations "as a matter of urgency".
"With further bill increases on the horizon, there is no time to spare," he said. "Dr Finkel's solutions might not be perfect but they're the best shot we've got."
NSW Energy and Utilities Minister Don Harwin said he was "disappointed" by the increases, which are the result of a "broken national energy market".