What’s the story with energy prices at the moment?

There’s been a lot of buzz in the news and on social media about energy prices. So we’ve put together a few FAQs to help explain what’s going on.

Frequently asked questions

Why are energy prices so high?

Volatility in the wholesale energy markets has recently led to large price rises in both wholesale electricity and gas. These have flowed through to the retail prices and is currently impacting energy retailers across Australia.

Why have wholesale energy prices gone up?

Local and global events like the situation in Ukraine, the floods in Queensland and recent problems with some Australian coal plants, have put enormous pressure on the energy supply chain. This has pushed prices up in the wholesale energy market. (If you’d like more detail about this, we’ve gone further down the rabbit hole here.)

When will prices come down?

It depends on what happens in the wholesale energy market. While wholesale prices are so high, retailers need to price their plans accordingly.

How does the situation in Ukraine impact power prices over here?

Russia is one of the world’s largest gas and coal exporters. But with the recent sanctions effectively removing their supply from most of the global market, the demand for gas and coal around the world has increased. Gas and coal are the main sources of electricity in Australia, so that’s why prices here have also increased here.

You’re one of Australia’s greenest power companies – why does an increase in coal prices affect your prices?

Our parent company (Hydro Tasmania) is Australia’s largest generator of renewable energy and will continue to generate its clean, renewable energy into the grid. 

But no matter which power company you’re with, the electricity comes from the same energy pool (you may know it as ‘the grid’). It’s a mix of energy from both renewable and non-renewable sources – like coal. 

The volatility of wholesale energy prices we are seeing at the moment is impacting the whole energy sector.

What can I do if I’m worried about energy prices?

  • Cut back on energy use
    Yes, it sounds trite. But also yes, reducing usage is a good way to wrangle power bills. If you need ideas, here are tips to:
  • Shop around for a better offer
    If you’re a Momentum customer, of course we’d prefer you to stay, but it’s also good to know we don’t charge exit fees and you’re not locked in. The best place to compare offers is through a government comparison site where all energy companies are included (not just a selected list like many other sites). In Victoria, visit compare.energy.vic.gov.au. For other states, go to energymadeeasy.gov.au.
  • Trouble with bills? Call your power company
    If you’re having difficulty paying your energy bills, power companies have processes in place to help you through it. Get in touch with yours to chat about your options.

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