Household electricity bills could rise by as much as nine per cent, costing Australians an extra $60 to $140 depending on location.

The increase follows the Australian Energy Regulator updating annual benchmark prices in NSW, South Australia, south-east Queensland and Victoria on Thursday.

Energy Minister Chris Bowen called on Australians to shop around for better deals, while blaming breakdowns at power plants for higher costs.

“One of the reasons for this decision today is spikes caused by coal-fired power stations breaking down,” said Bowen.

“Not a day in the last two years have we had a coal-fired power station not break down somewhere in Australia.

“Not talking about plant maintenance — I’m talking about unexpected breakdowns which see energy prices spike.

“We want to replace that power with more reliable, cleaner, cheaper renewable energy. Mr Dutton wants to keep that for longer.”

Opposition leader Peter Dutton accused Labor of breaking its election promise of a $275 electricity bill cut, and called for Bowen to be sacked.

“I think the Prime Minister should accept that Chris Bowen has been a total failure as the Energy Minister in this country,” said Dutton.

“Chris Bowen and Anthony Albanese have presided over a broken promise of a $275 electricity cut, which was made on 97 occasions before the election, and now power bills have gone up by $1,300.

“Chris Bowen has been a disaster. He’s one of the key players in the Albanese government, and he has let Australians down, and there should be a price to pay for that.

“And frankly today, if the Prime Minister doesn’t sack Chris Bowen, I don’t know when he would sack him, because he deserves to lose his job over forcing up the electricity prices of Australians yet again.”

Australian households received a $300 federal rebate on their electricity bills in the 2024-25 financial year, taken off bills quarterly, and there are questions of whether it will be extended.

But Dutton said giving out rebates also pushed up prices.

Caps on what regulators can charge households and businesses in NSW, South Australia, south-east Queensland and Victoria are refreshed every year.

Default market offers, as they are known, are updated annually to reflect the cost retailers are paying generators for electricity and to have it transported through poles and wires.

Safety net prices differ by region but residential electricity customers from NSW are on track for price rises of somewhere up to 8.9 per cent compared with the last financial year.

Customers in South Australia and south-east Queensland face smaller increases, of 3 to 6 per cent.

Inflation-adjusted annual price increases of between $60 and $140 can be anticipated, depending on the area.

Small business customers could face price gains of 4.2-8.2 per cent.

The Australian Energy Regulator, which sets default prices in those states, said higher wholesale market and network costs were contributing to the above-inflation jump.

Average wholesale market spot prices increased in 2024, driven by high demand, coal generator and network outages, and low solar and wind output that caused “high price events” in the relevant states.

“We’ve seen cost pressures across nearly every component of the default market offer,” AER chair Clare Savage said.

The regulator is expected to finalise the offer in May.

In Victoria, benchmark prices are set by a state-based regulator and residential customers can expect a $12 increase – less than 1 per cent – averaged across the five regions.

The state’s Essential Services Commission said some customers might find bills reduced by $19 but others faced a $68 hike, depending on location.

Small businesses on the Victorian default offer will have a 3 per cent price increase, or $104, on last year.

However, only customers who fail to shop around end up on retailers’ standard offers – hunting for better deals can help households and businesses keep prices down.

Energy bill relief has further insulated households and businesses from price pain, with speculation the federal government will extend its subsidies in its budget planned for March 25.

Energy regulators kept default offers fairly stable last financial year. It was a welcome reprieve following sharp increases in the years prior, triggered by Russia’s invasion of Ukraine pushing up wholesale prices.

The Australian Council of Social Services said renters, people on income support or living with a disability or chronic medical condition were finding it particularly hard to pay their energy bills.

The council’s study, which surveyed more than 1000 people about their energy bills in December and January, found almost two in three Australians (64 per cent) were struggling to pay their bills, even though most from that group had tried to reduce their energy use.

ACOSS called for greater government support to upgrade social housing and provide bill relief.

Research by comparison website Compare the Market had a similar result, finding three-quarters of Australians it surveyed had been shocked by their energy bills in the past three months.

“We know that all Australian households received rebates to help keep energy bills down – some states more than others. But the reality is most homes have either chewed through the rebate or will only receive one or two more payments of $75 until the end of the financial year,” Compare the Market energy chief Meredith O’Brien said.

“In Brisbane, for example, where residents received a $1000 cost-of-living rebate as well as the $300 federal government rebate, the latest CPI data shows that electricity prices were up 219.8 per cent in the December quarter.

“If you’re in a part of Australia where you can compare and switch energy plans and you haven’t in more than a year, chances are you’re paying more than you need to for the same gas or electricity supply.”

O’Brien recommended looking for a “better offer” message on power bills. These are compulsory in all the affected regions and will advise if a cheaper plan is available.

The draft energy proposals will be finalised sometime in May.

-with AAP