Rising Power Prices – What’s the Story?

Recent media coverage has suggested a number of incorrect and inaccurate theories for rising power prices in Australia.

The simple fact is, Australia’s electricity prices have risen because the price of power we buy on our customers’ behalf has increased substantially. 

While the cost to run power stations may not have changed very much over the last few years, coal fired power stations have closed, reducing supply, and this contributes to higher retail energy prices. 

And despite some claims suggesting otherwise, around one third of your electricity and gas bill pays wholesale costs.

The price rises have been well documented by the independent Australian Energy Regulator and referenced and explained by analysts, governments and industry. 

A lack of policy certainty over a very long time, which has stopped investment in new energy sources, has also contributed to the price rises. We’re doing everything we can to encourage governments to bring in policies that will spur investment in new power supply, to help bring prices down.

When prices rise, we’re always particularly concerned about the impact on our customers who are already doing it tough. That’s why we were the first company to announce those in our financial hardship program will not pay these price increases. 

We encourage any customer having trouble paying their bill to contact us, and if you’re interested in learning more about what Origin is doing, and what you can do, to manage rising power prices please see the below resources.

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