As we have previously indicated, significant increases in the Small Market Tariffs are expected to be implemented from 1st July as a result of the extreme market volatility over the past 12 months. These Tariffs, or Default Market Offers, are reviewed annually and approved by the Australian Energy Regulator.
The regulator has commenced releasing proposed increases in line with their review process, and the news is not good. Tariffs for Small Business are proposed to increase by 15-20% in NSW, 20% in QLD, 26% in SA and 33% in VIC. Increases in Residential Tariffs will be similar.
These tariffs are yet to be confirmed, but we do not traditionally see material changes during the consultation process.
With this level of increase, now more than ever is the time to be reviewing your SME portfolio if it has not yet been consolidated in a supply agreement.