Australian households are voicing frustration after major energy companies rolled out changes to electricity pricing that have left many customers facing higher costs, despite expectations of relief.
The backlash centres on a restructure of electricity bills that came into effect from July 1.
While usage rates have generally fallen across many plans, the daily supply charge has risen sharply for a large number of customers.
Several major energy retailers, including AGL, Origin Energy, EnergyAustralia and GloBird Energy, have already notified customers of upcoming changes, according to Finder.
The result has caused confusion, particularly in New South Wales, South Australia, and Queensland, where benchmark prices were cut by the Australian Energy Regulator in May by up to 10.7 per cent.
Many customers had expected those cuts to flow through into lower bills, but instead, some say the way charges have been rebalanced has left them worse off overall.
In some cases, householders are being hit with hikes to their daily supply charge of more than 60 per cent.
Origin has told customers the changes are part of broader pricing adjustments across its plans.
“Changes will vary depending on each customer’s location and what plan they are on, and we are currently contacting all customers whose prices are changing,” an Origin spokesperson told Yahoo Finance.
However, households have pointed to significant jumps in fixed daily costs.
In some cases, supply charges have risen from under $1 per day to well over $2 per day, offsetting reductions in per-kilowatt usage rates.
The shift has become the central concern for many who took to social media to vent their frustrations.
One customer described the change as misleading after breaking down their new pricing structure.
“This is just general BS to pretend you are getting a better deal,” one person posted to Reddit.
The customer pointed to reductions in usage rates but said they were offset by a steep rise in fixed daily charges.
“So, my great deal ends up costing $50 more overall,” they wrote.
“The extra daily supply charge goes from $1.93 per day to $2.72.
“This supply charge is the biggest grift going.”
The complaint reflects a broader sentiment emerging online, with customers across Australia questioning how bill savings are being calculated.
Many say the way discounts are presented focuses attention on usage rates, while the impact of higher fixed charges is less visible.
“It is very misleading when you show that prices are decreasing, but then see other charges go up,” one user wrote in response to the post.
“Most people wouldn’t even look at that part.”
Others say they are now preparing to switch providers once price changes fully flow through the system.
“It sucks, wait for all the price changes to wash through-out July, then shop around and switch in August,” wrote another.
“Last year I did this and Origin ended up giving me a retention offer which matched the competitor plus $200 credit. Going to do it again this August.”
Origin defended its pricing, saying the overall impact depends on individual consumption patterns.
The changes come after the Australian Energy Regulator reduced default market offers in several states in a move expected to ease pressure on household bills.
NSW saw reductions of 7.7 per cent, while south-east Queensland recorded cuts of more than 10 per cent.
“For customers on a standing offer, their rates follow the Default Market Offer and are set by the Australian Energy Regulator,” the Origin spokesperson explained.
“For market customers, Origin sets the rates and they aren’t necessarily the same as the DMO.
“We consider changes in the DMO in determining our pricing.”
Queensland Treasurer and Energy Minister David Janetzki already took aim at Origin over the pricing changes, saying households were being misled.
“That’s not what they ought to be doing,” he said last month.
“Origin is the first retailer that appears not to be doing the right thing, and this is just the beginning. I’ll be looking to name other retailers if they don’t do the right thing.”
Speaking to ABC News, Australian Energy Council’s Louisa Kinnear said some customers may mistakenly assume their bills are increasing, when in many cases retailers are simply rebalancing usage charges.
Federal Energy Minister Chris Bowen has asked the Australian Energy Regulator to examine whether retailers have properly communicated changes to customers.
“If your costs are coming down, your customers’ bills should be too,” he told the Australian Financial Review.