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Why are my energy bills so high?

Right now, Australia is experiencing higher prices for gas and electricity, for several reasons:

  • the invasion of Ukraine triggered a global supply shock that has sent the prices of gas, black coal and fuels skyrocketing as Russia’s oil and gas continue to be sanctioned
  • unplanned outages and reductions in output at Australian coal-fired power stations have driven up the need for gas-fired electricity generation
  • ongoing supply chain disruptions, including delivering coal to power plants

All of this has led to an extraordinary rise in wholesale gas and spot electricity prices, and this, in turn, has resulted in retail price rises.

With our nation-leading transition to renewable energy helping to insulate Victorians, our energy price increases have been less than in other states.

However, rising energy bills are putting pressure on businesses and households.

That’s why we provide ways for Victorians to quickly tackle their energy bills and make substantial changes to lock in long-term savings. There is also support available if you need it.

Victoria has also been working with Commonwealth, state and territory Energy Ministers and national energy market bodies – including the Australian Energy Market Operator – to help moderate prices.

The work undertaken so far includes:

  • formation of the National Energy Transformation Partnership to support the transition of Australia’s energy sector to net zero emissions
  • a new mechanism – the Capacity Investment Scheme – to fast-track the development of big batteries and long duration storage
  • implementing price caps on gas and coal and working to implement an energy bill relief package of $1.5 billion from the Commonwealth for households and small businesses across the country.

Victoria is also helping deliver cheaper, cleaner energy to Victorians through:

  • announcing new renewable energy targets of 65% by 2030, and 95% by 2035
  • announcing Australia’s biggest energy storage targets of at least 2.6 gigawatts of energy storage capacity by 2030 and 6.3 gigawatts by 2035, alongside a $157 million package supporting renewable generation and storage projects
  • reviving the State Electricity Commission backed by an initial investment of $1 billion towards delivering 4.5 gigawatts of power
  • joining the Commonwealth Government in the $4.75 billion Rewiring the Nation initiative.

Stay ahead of energy prices

See how you can take control of your energy bills and find out what support is available if you need it. This includes:

Page last updated: 07/02/24