Households warned to brrr-ace themselves for winter bill shock

Households are being warned to brace for incoming bill shock this winter, as predicted default price hikes look to cause further headaches in the cost-of-living crisis.

Default power prices are anticipated to rise by as much as 31% across New South Wales, Victoria, Queensland and South Australia from July 1, which could leave already financially-strapped households in a pinch when it comes to their energy bills, particularly as additional heating costs come into the equation.

According to new Canstar Blue data, winter heating costs can add anywhere from $104 to $338 to the average household energy bill, depending on customers’ usage, location and type of heater.

Canstar Blue Utilities Editor Tara Donnelly said it was households in colder climates that copped the most heat when it came to winter energy costs.

“For households in areas like Melbourne, Hobart, Canberra and Adelaide heating costs can cause considerable strain to household budgets,” she said. “Our cost analysis suggests that these households could be hit with as much as a $210 bill hike for electric heating this winter.

“Gas users could be hit with an even more concerning $338 hike, just for keeping warm.”

See our full analysis on this year’s estimated winter heating costs for gas heaters, electric heaters and reverse cycle systems in our state-by-state price guide.

With this year pinned by experts as one of the worst yet for winter heating costs, its left many concerned for households who may already be struggling.

Origin Retail Executive General Manager Jon Briskin said it was important that households expressed any concerns with their retailer sooner, rather than later this winter, if they feel they may need some extra assistance.

“We encourage any customer who is having trouble paying their energy bills as we head into winter to get in touch with their energy provider for support,” he said. “They should also check to see if they are eligible for concessions in their state or territory.”

Households have also been encouraged to consider implementing some energy saving tactics such as adjusting the thermostat or insulating their homes, to provide further protection against soaring winter heating costs.

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What can I do to reduce my winter energy bill shock?

Unfortunately, heating costs are inevitable for most households. However, they needn’t always come as a shock. There are several things that households can begin to do today to avoid a nasty surprise on their power or gas bills in three months’ time.

Chromagen national commercial manager Daniel Clark said the most important thing was making sure high-usage appliances were in tip-top shape to avoid inefficient usage.

“During the winter months, heating your house can result in astronomical power bills if you’re not prepared,” he said. “The first thing households must do is undertake an audit of key appliances including hot water systems which chew up to 70 per cent of household energy bills.”

Chromagen is one of the country’s leading solar and hot water system installation companies with a key focus on energy-efficient electric hot water systems.

Chromagen’s Mr Clark added that keeping an eye on the thermostat, closing doors and windows and ensuring your home is properly insulated can also help to drastically reduce the costs on your winter energy bills.

“For every degree that you turn the heating up, that is adding an additional 10 per cent to your running costs,” he said. “The harder your appliances have to work to keep a large open space warm/cold, the more they are going to cost you. It absolutely makes no sense to spend money on keeping the house at a comfortable temperature while at the same time allowing air leakage.

“Proper insulation is the key to reducing your energy bills as it helps keep your home at a comfortable temperature meaning that your heater or cooler is only closing the gap. Upgrading your ceiling insulation means that you’re reducing heat transfer, and you could end up reducing your bills by up to 45 per cent, or between $200 and $500 for normal households.”

Mr Clark however, reminded households that these changes were not just applicable to winter heating, but also year-round energy efficiency.

“It doesn’t matter whether it’s summer or winter, by making smart, informed choices, you can be assured to be in better control of your power bills,” he said. “Given we have winter approaching, do your research and make any changes needed ASAP to avoid winter bill shock.”

What are Mr Clark’s top 10 tips for winter energy saving?

With this winter tipped to be the worst yet for energy bill costs, Mr Clark has shared his 10 simple tips for keeping toasty without breaking the bank. These are:

1. Be aware of your thermostat settings
2. Use a cold wash for your washing machine where possible
3. Keep doors, windows and curtains closed when you can to avoid a draft
4. Properly insulate your home to avoid heat from escaping through your walls and ceiling
5. Upgrade your lighting to energy-efficient bulbs
6. Take advantage of free government hot water system replacement schemes in your state/territory
7. Install a home energy monitoring system and track what appliances are using the most power
8. Have an energy free/low energy usage day
9. Consider getting solar panels and reducing your reliance on expensive grid power
10. Compare power providers and ensure you stay on the best possible price for you

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