New figures reveal a sharp surge in electricity bills, with average household power costs in Australia rising 27.16% above inflation over two years.
Data from energy comparison service iSelect shows the average electricity price climbed from $0.361/kWh in June 2023 to $0.389/kWh in June 2025—an increase of 7.63%, compared to a 6% rise in the consumer price index.
Julia Paszka, iSelect’s utilities general manager, warned that Australian households are “facing above-inflation increases in their electricity bills,” expressing concern about further hikes after the monthly inflation indicator reached 2.8% in July—the highest level in a year.
eToro market analyst Josh Gilbert said the figures represent a “sharp reversal from the steady disinflation we’ve seen over recent months,” pushing inflation back toward the top of the Reserve Bank’s target band.
Price hikes intensified from July 1, when the Australian Energy Regulator (AER) adjusted its default market offer, the cap on power prices. NSW households saw the steepest increases, up to 9.7%, while southeast Queensland recorded rises of up to 3.7%, and South Australia up to 3.2%.
AER chair Clare Savage attributed the hikes to rising transmission and wholesale costs, adding that retail charges rose between 8% and 35% compared with last year.
Households will receive some relief with two $75 energy rebates applied to their last two bills of 2025. The federal government has extended the rebates until the end of the year but confirmed they will not continue into 2026.
