Are you experiencing bill shocks lately? Here's why energy companies might be duping you
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As the cost of living continues to rise, Australians are constantly looking for ways to save money and cut costs.
Many households grapple with rising costs, especially when it comes to utility bills.
But what if the rising costs are not just a product of increased usage or inflation?
Recent research from prominent think tank The Australia Institute revealed some startling figures, suggesting Australia's major energy companies may be 'ripping off' households—to the tune of hundreds of dollars per year.
According to the institute's findings, each Australian household contributes an average of $750 in profits to electricity companies and about $400 to gas companies.
These figures came as a shock, especially at a time when more consumers struggled to pay their utility bills despite recent power bill rebates.
The Australia Institute's senior research fellow, David Richardson, pointed at AGL and Origin for profiteering off consumers the most.
His analysis indicated that AGL's average electricity consumer contributes $755 to the company's earnings.
Meanwhile, Origin customers contribute an average of $595.
For gas, AGL is making $414 a year per customer, and Origin is earning $418.
Richardson accused these companies of charging households up to three times as much per gigajoule of gas as they do businesses.
These findings led to the conclusion that price gouging has been rampant among energy companies.
AGL and Origin, however, dispute these findings.
Origin reported a 60 per cent rise in net profit to $1.18 billion in 2023-24.
Meanwhile, AGL's underlying profit spiked by about 190 per cent to $812 million in the same period.
Despite these profits, Origin argued that the Australian Competition and Consumer Commission (ACCC) found that 'energy retailers recorded an average margin of $34 per year per residential customer' in 2022-23.
They claim that comparing commercial and residential prices is not valid due to fundamental differences in input costs and contract nature.
AGL defended its pricing, stating that large business customers receive bespoke pricing based on individual profiles.
Apart from business customers, residential customers' consumption varies heavily.
They also highlighted that while wholesale electricity prices have eased from the extreme peaks of 2022, network costs have increased, making up 40 per cent of a customer's bill.
So, what does this mean for Aussies, especially seniors? It's a reminder to be vigilant about energy bills and to question any significant increases.
It's also a call to action to shop around for better deals and pricing.
Have you noticed a significant increase in your energy bills? Do you feel you're getting value for money from your energy provider? Share your experiences and insights with us in the comments below.
Many households grapple with rising costs, especially when it comes to utility bills.
But what if the rising costs are not just a product of increased usage or inflation?
Recent research from prominent think tank The Australia Institute revealed some startling figures, suggesting Australia's major energy companies may be 'ripping off' households—to the tune of hundreds of dollars per year.
According to the institute's findings, each Australian household contributes an average of $750 in profits to electricity companies and about $400 to gas companies.
These figures came as a shock, especially at a time when more consumers struggled to pay their utility bills despite recent power bill rebates.
Electricity bills, along with other utilities, continue to rise. Image Credit: Pexels/Tim Mossholder
The Australia Institute's senior research fellow, David Richardson, pointed at AGL and Origin for profiteering off consumers the most.
His analysis indicated that AGL's average electricity consumer contributes $755 to the company's earnings.
Meanwhile, Origin customers contribute an average of $595.
For gas, AGL is making $414 a year per customer, and Origin is earning $418.
Richardson accused these companies of charging households up to three times as much per gigajoule of gas as they do businesses.
These findings led to the conclusion that price gouging has been rampant among energy companies.
AGL and Origin, however, dispute these findings.
Origin reported a 60 per cent rise in net profit to $1.18 billion in 2023-24.
Meanwhile, AGL's underlying profit spiked by about 190 per cent to $812 million in the same period.
Despite these profits, Origin argued that the Australian Competition and Consumer Commission (ACCC) found that 'energy retailers recorded an average margin of $34 per year per residential customer' in 2022-23.
They claim that comparing commercial and residential prices is not valid due to fundamental differences in input costs and contract nature.
AGL defended its pricing, stating that large business customers receive bespoke pricing based on individual profiles.
Apart from business customers, residential customers' consumption varies heavily.
They also highlighted that while wholesale electricity prices have eased from the extreme peaks of 2022, network costs have increased, making up 40 per cent of a customer's bill.
So, what does this mean for Aussies, especially seniors? It's a reminder to be vigilant about energy bills and to question any significant increases.
It's also a call to action to shop around for better deals and pricing.
