From $550 to $1,600—THIS Aussie’s bill shows scale of power crisis

When Jessica Gaddes opened her winter electricity bill, she thought she had misread the number staring back at her.

The total came to $1,596—triple what she had paid just months earlier.

Across Australia, thousands of households were discovering the same painful truth: power bills were spiralling out of control.

Jessica, 37, lived alone with her two dogs in Sydney’s south-west and had grown used to high winter bills.

But what once cost her around $550 had ballooned to more than $1,500 in a single quarter.

The surge followed changes to the Default Market Offer on 1 July 2025, which lifted bills by as much as $228 a year for those on standing offer plans.

‘I always expect a big one around winter, but each year it is just going up and up,’ Jessica shared. ‘It’s not going up by small amounts, it’s going up by a massive amount.’

The reasons behind the spike stretched well beyond cold weather.

Fossil-fuelled electricity was costing an average of $137 per megawatt hour in 2024—almost double the $71 per megawatt hour for renewable power.

Aging coal stations plagued by breakdowns, costly gas exports, and rising network expenses all combined to push household bills higher.

Australia’s largest coal-fired station, Eraring in New South Wales, recorded more than 6,000 hours of outages in 2024, a stark sign of the grid’s fragility.

Government rebates softened the blow last year, but much of that relief was now spent.

Western Australians had drawn down their second instalments, and Queenslanders were working through the $1,000 rebate, leaving many exposed to the full force of higher tariffs.

For those on fixed incomes, the burden was heavier still.

ACOSS chief executive Dr Cassandra Goldie warned that low-income Australians were paying the price.

‘Today’s announcement of another increase to electricity prices is a blow for people on the lowest incomes, who are already making enormous sacrifices to afford their energy bills,’ she said.

Older Australians were especially vulnerable.

Many stayed with the same retailer for years, only to be shifted onto expensive standing offer plans when their previous contracts expired.

Studies showed that loyalty rarely paid—competitive deals were typically 18 to 27 per cent cheaper than the Default Market Offer, and up to 95 per cent of available plans sat below that benchmark.

Adding to the frustration, electricity bills were so complex that most customers could not make sense of them.

Jessica herself admitted she struggled with the jargon, and surveys revealed only a third of Australians fully understood their statements.

Nearly a quarter of long-term customers avoided switching because they found comparing plans too confusing.

Some seniors could ease costs by choosing plans tailored to their needs.

Those home more often might benefit from lower usage rates, while lighter users could save by prioritising lower supply charges.

Retailers such as Engie offered discounts for Senior Card holders, and government programs provided additional help for households in financial distress.

Jessica herself applied for the Energy Accounts Payment Assistance program and arranged a $125 weekly instalment plan to cover her debt.

Despite these strategies, the outlook remained bleak.

Rising network charges meant more increases were likely from FY2026, with sharp jumps forecast in some areas.

Yet experts agreed that expanding renewable energy—supported by storage—offered the clearest path to long-term price relief.

From 30 December 2026, new rules would also require retailers to flag cheaper plans directly on bills, making it easier for customers to spot better offers.

For now, households needed to act quickly.

Research suggested Sydney residents could save more than $400 a year by switching from average plans to the lowest-cost options—a meaningful sum for families juggling groceries, medication, and rent.

If rising electricity bills have left you feeling overwhelmed, you’re certainly not alone.

Many households are finding it harder to stretch their budgets as energy costs continue to climb, even with rebates and discounts in place.

For a closer look at how this growing issue is affecting everyday life, here’s another story worth exploring.

Read more: Soaring energy costs leave households struggling to keep up

Would you sacrifice essentials like food or medication just to keep the lights on?