More than 230,000 households across Victoria will be hit by a four per cent electricity price increase from Red Energy, a retailer owned by the federal government through Snowy Hydro.
The move will add more than $50 to the average annual bill, compounding the ongoing cost-of-living pressures for families.
This increase, effective for the 2025–26 financial year, will offset much of the federal government’s electricity rebate, which was halved this year to $150.
While Red Energy’s hike is smaller than in New South Wales — where prices are rising by 15 per cent — it exceeds those of rival retailers in Victoria. AGL, the state’s largest electricity supplier, announced a 6.8 per cent rise, while Origin and EnergyAustralia are raising prices more moderately.
Snowy Hydro described the price increase as a “difficult decision” but necessary due to rising wholesale and network costs, which account for more than 70 per cent of a typical household bill.
Despite the justification, Red Energy’s profits are booming. The company’s retail revenue rose by 21 per cent in 2023–24, with earnings nearly doubling to $900 million. Meanwhile, its head of retail, Iain Graham, earned $1.69 million — a $350,000 pay rise from the previous year.
The office of Climate Change and Energy Minister Chris Bowen declined to directly comment on the increase, instead citing a recent speech in which Bowen promised “better-regulated pricing” and more efficient use of rooftop solar and batteries.
Mr Bowen, currently overseas on a climate diplomacy tour across the Pacific, had previously pledged to reduce household energy bills by $275 by 2025.
With prices climbing and rebates shrinking, critics are questioning whether public ownership of energy providers is truly serving the public interest — or simply contributing to corporate profit at the public’s expense.
