{"id":41927,"date":"2025-09-01T13:58:07","date_gmt":"2025-09-01T03:58:07","guid":{"rendered":"https:\/\/flowpower.com.au\/residential\/tips-and-insights\/what-to-do-during-a-high-price-event-2\/"},"modified":"2026-01-09T11:55:34","modified_gmt":"2026-01-09T01:55:34","slug":"why-do-electricity-retailers-change-their-rates-every-year","status":"publish","type":"post","link":"https:\/\/flowpower.com.au\/residential\/tips-and-insights\/why-do-electricity-retailers-change-their-rates-every-year\/","title":{"rendered":"Why do electricity retailers change their rates every year?\u00a0"},"content":{"rendered":"","protected":false},"excerpt":{"rendered":"","protected":false},"author":20,"featured_media":36267,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[9],"tags":[],"class_list":["post-41927","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy-knowledge"],"acf":{"page_builder":[{"acf_fc_layout":"blog_hero","title":"<h2><span class=\"TextRun SCXW12301626 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW12301626 BCX0\">Why <\/span><span class=\"NormalTextRun SCXW12301626 BCX0\">do <\/span><span class=\"NormalTextRun SCXW12301626 BCX0\">electricity retailers change their rates every year<\/span><span class=\"NormalTextRun SCXW12301626 BCX0\">?<\/span><\/span><span class=\"EOP SCXW12301626 BCX0\" data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/h2>","blurb":"Discover why electricity rates change each year, what influences these changes and how Flow Power is keeping base rates steady for FY26 while helping you save.  ","read_length":"8 mins","background_colour":"dark-blue"},{"acf_fc_layout":"blog_article","sections":[{"acf_fc_layout":"content","content":"<span data-contrast=\"auto\">Ever wondered why your electricity rates seem to change every year? You\u2019re not alone. <\/span>\r\n\r\n<span data-contrast=\"auto\">Most consumers will have an annual rate change. This is because most Australian energy retailers review and update their prices annually, due to a combination of rising costs and external market factors. <\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">Let\u2019s break down why this happens, what drives these changes, and how Flow Power is doing things differently this year.<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span>\r\n<h3><\/h3>\r\n<h3>What drives annual electricity rate changes?<\/h3>\r\n<span data-contrast=\"auto\">Like other household costs, the price of electricity is influenced by a broad range of factors. If these factors push up the costs of electricity, it can ultimately affect what retailers pay for power. At the same time, retailers buy electricity on the wholesale market, where prices can swing every few minutes based on supply and demand. Both the long-term cost pressures <\/span><span data-contrast=\"auto\">and the changing costs of managing these short-term wholesale movements<\/span><span data-contrast=\"auto\"> together drive annual rate changes. <\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span>\r\n\r\n&nbsp;\r\n\r\n<span data-contrast=\"auto\">Factors that influence wholesale prices can include (but not limited to):<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span>\r\n<ul>\r\n \t<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Weather:<\/span><\/b><span data-contrast=\"auto\"> Extreme weather events like heatwaves or cold snaps have a big impact on electricity prices. When temperatures soar in summer, more people use air conditioning to stay cool. In winter, heaters are switched on across the country. This surge in demand means power stations have to work harder, and more expensive generators are often replied upon to meet the extra demand. Because the wholesale electricity market works on supply and demand, this increased demand pushes wholesale prices up.. Even if you\u2019re not using more power in these periods, the overall strain on the grid can lead to higher rates for all customers if their retailers pass through these higher wholesale prices when they update their rates.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span>\r\n<ul>\r\n \t<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Fuel costs:<\/span><\/b><span data-contrast=\"auto\"> The cost of generating electricity depends heavily on the price of fuels like coal, gas, and even renewables. Coal and gas are expensive commodities, and their prices can swing wildly due to global market changes, supply shortages, or increased export demand. When these prices rise, it becomes more expensive for power stations to produce electricity, and those higher costs flow through the wholesale market - meaning retailers pay more and may need to increase the rates they charge customers.\r\n<\/span><span data-contrast=\"auto\">\r\nRenewable energy sources like solar and wind are changing the game. Unlike coal and gas, wind and sunshine are free, which means wind and solar-powered generation can produce power at very low prices.. Plus, renewables generate power without the harmful emissions that come from burning fossil fuels, making them better for the environment and our health.<\/span> <span data-contrast=\"auto\">At Flow Power, we support Australia\u2019s transition to a cleaner, greener grid by virtually linking customers to local renewable generators. When you use more energy when renewables are abundant, you\u2019re not only lowering your costs but you\u2019re also helping create a more sustainable energy system for everyone.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n&nbsp;\r\n<ul>\r\n \t<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"4\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Network:<\/span><\/b><span data-contrast=\"auto\"> To allow electricity to reach your home, there is a complex network of poles, wires, substations, and other infrastructure. To keep this system reliable and safe, it needs regular maintenance, upgrades, and sometimes expansion to meet growing demand or support new technology. There are costs associated with maintaining this infrastructure and funding its expansion. \u00a0The companies that manage the network recover these expenses through network charges, which are included in your electricity bill. When major upgrades or expansions are needed, these charges can rise - resulting in higher rates for customers.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n \t<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"5\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Government Policies: <\/span><\/b><span data-contrast=\"auto\">Government decisions can have a significant impact on electricity prices. For example, regulations could \u00a0set renewable energy targets. While these policies can help with creating a cleaner, more sustainable future, they can also lead to extra costs for energy producers - such as investing in new technology or purchasing carbon credits. These additional expenses are often passed through the supply chain and can result in higher rates for customers. <\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<span data-contrast=\"auto\">Changes in taxes, subsidies, or market rules can also influence what you pay for electricity. <\/span>"},{"acf_fc_layout":"pull_out","content":"<h3>When do retailers typically increase rates each year?<\/h3>\r\n&nbsp;\r\n\r\nEach year, regulators like the Australian Energy Regulator (AER) review these market conditions and set a new \u201creference price\u201d for electricity.\r\n\r\nRetailers then adjust their rates - usually in July - to reflect these changes and ensure they can cover their costs."},{"acf_fc_layout":"spacer"},{"acf_fc_layout":"content","content":"<h3>What\u2019s happening in FY26?<\/h3>\r\n<span class=\"TextRun SCXW212686086 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW212686086 BCX0\">This year, wholesale electricity prices have continued to rise across much of Australia, driven by ongoing market pressures and increased demand<\/span><\/span><span class=\"TextRun Highlight SCXW212686086 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW212686086 BCX0\">.<\/span><\/span><span class=\"TextRun SCXW212686086 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"> <span class=\"NormalTextRun SCXW212686086 BCX0\">This <\/span><span class=\"NormalTextRun SCXW212686086 BCX0\">extra cost for <\/span><span class=\"NormalTextRun SCXW212686086 BCX0\">retailers has<\/span><span class=\"NormalTextRun SCXW212686086 BCX0\"> resulted in <\/span><span class=\"NormalTextRun SCXW212686086 BCX0\">many retailers increasing their rates for households<\/span><span class=\"NormalTextRun SCXW212686086 BCX0\"> and businesses<\/span><span class=\"NormalTextRun SCXW212686086 BCX0\">. (For more on recent price trends, see the AER\u2019s <\/span><\/span><a class=\"Hyperlink SCXW212686086 BCX0\" href=\"https:\/\/www.aer.gov.au\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"TextRun Underlined SCXW212686086 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW212686086 BCX0\" data-ccp-charstyle=\"Hyperlink\">latest State of the Energy Market report<\/span><\/span><\/a><span class=\"TextRun SCXW212686086 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW212686086 BCX0\">.)<\/span><\/span><span class=\"EOP SCXW212686086 BCX0\" data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span>\r\n<h6><span class=\"TextRun SCXW21246722 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW21246722 BCX0\">Here\u2019s<\/span><span class=\"NormalTextRun SCXW21246722 BCX0\"> the good news: Flow Power\u2019s base rates are not changing for <\/span><span class=\"NormalTextRun SCXW21246722 BCX0\">FY<\/span><span class=\"NormalTextRun SCXW21246722 BCX0\">26.<\/span><\/span><span class=\"EOP SCXW21246722 BCX0\" data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/h6>\r\n<span data-contrast=\"auto\">While many other retailers are passing on price hikes, we\u2019re keeping our <\/span><b><span data-contrast=\"auto\">Flow Home base electricity rate steady<\/span><\/b><span data-contrast=\"auto\"> for FY26. We want the electricity market to work for you, and that means setting you up for success with a fair base rate <\/span><i><span data-contrast=\"auto\">and <\/span><\/i><span data-contrast=\"auto\">the opportunity to reduce this rate when you shift your energy use. <\/span>\r\n\r\n<span data-contrast=\"auto\">With Flow Home, you have the opportunity to influence what you pay for electricity through our <strong>Price Efficiency Adjustment (PEA)<\/strong> which is a variable line item on your bill that reflects how price efficiently you use electricity relative to the market.<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">If you shift your energy usage to cheaper, greener times - like the middle of the day when renewables are abundant, you can <\/span><b><span data-contrast=\"auto\">lower your overall rate<\/span><\/b><span data-contrast=\"auto\"> through a negative PEA.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">But if you consistently use power during expensive periods, like the early evening - you may see an additional charge as your PEA. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n&nbsp;"},{"acf_fc_layout":"pull_out","content":"<h3>How to take control of your bill<\/h3>\r\n<span data-contrast=\"auto\">With Flow Home, it\u2019s simple: the more you shift your usage away from peak times and towards the middle of the day, the more likely you are to benefit.<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">We\u2019re committed to helping you build good habits, understand your usage patterns, and take advantage of market signals. That\u2019s what the PEA is all about - <\/span><b><span data-contrast=\"auto\">rewarding smart energy use<\/span><\/b><span data-contrast=\"auto\"> and supporting a cleaner grid at the same time.<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span>"},{"acf_fc_layout":"spacer"},{"acf_fc_layout":"content","content":"<h3><span class=\"TextRun SCXW18617925 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun CommentStart SCXW18617925 BCX0\">Want to see how our pricing works?<\/span><\/span><span class=\"LineBreakBlob BlobObject DragDrop SCXW18617925 BCX0\"><span class=\"SCXW18617925 BCX0\">\u00a0<\/span><br class=\"SCXW18617925 BCX0\" \/><\/span><\/h3>\r\n<span class=\"TextRun SCXW18617925 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW18617925 BCX0\">Check out our <\/span><span class=\"NormalTextRun SCXW18617925 BCX0\">pricing <\/span><\/span><a class=\"Hyperlink SCXW18617925 BCX0\" href=\"https:\/\/flowpower.com.au\/residential\/pricing\/our-pricing\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"TextRun Underlined SCXW18617925 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW18617925 BCX0\" data-ccp-charstyle=\"Hyperlink\">here<\/span><\/span><\/a><span class=\"TextRun SCXW18617925 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW18617925 BCX0\">.<\/span><\/span>\r\n<h3><span class=\"TextRun SCXW189753410 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW189753410 BCX0\">Ready to take control of your energy costs?<\/span><\/span><\/h3>\r\n<span class=\"TextRun SCXW189753410 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW189753410 BCX0\">Switch to Flow Power today and join a community of Aussies using energy smarter.<\/span><\/span><span class=\"EOP SCXW189753410 BCX0\" data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span>\r\n\r\n&nbsp;\r\n\r\n[button text='Make the switch' link='https:\/\/flowpower.com.au\/residential\/sign-up\/how-to-sign-up\/']"}],"background_colour":""},{"acf_fc_layout":"faq_cta","heading":"<h2>Have more questions? <em>we\u2019re here to help<\/em><\/h2>","content":"<h5>Drop us your details and one of our friendly agents will be in touch.<\/h5>\r\n[gravityform id=\"12\" title=\"false\" ajax=\"true\"]","buttons":[{"link":{"title":"See our FAQs","url":"https:\/\/flowpower.com.au\/residential\/frequently-asked-questions\/","target":"_blank"}},{"link":{"title":"Contact Us","url":"https:\/\/flowpower.com.au\/residential\/contact-us\/","target":"_blank"}}],"show_arrow":false,"centered":false,"background_colour":""}],"summary":"Discover why electricity rates change each year, what influences these changes and how Flow Power is keeping base rates steady for FY26 while helping you save.  ","show_ci_banner":false,"hide_headermenu":false},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Retailers Change Energy Rates Each Year | Flow Power<\/title>\n<meta name=\"description\" content=\"Discover why electricity rates change each year, what influences these changes and how Flow Power is keeping base rates steady for FY26 while helping you save.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/flowpower.com.au\/residential\/tips-and-insights\/why-do-electricity-retailers-change-their-rates-every-year\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Retailers Change Energy Rates Each Year | Flow Power\" \/>\n<meta property=\"og:description\" content=\"Discover why electricity rates change each year, what influences these changes and how Flow Power is keeping base rates steady for FY26 while helping you save.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/flowpower.com.au\/residential\/tips-and-insights\/why-do-electricity-retailers-change-their-rates-every-year\/\" \/>\n<meta property=\"og:site_name\" content=\"Flow Power\" \/>\n<meta property=\"article:published_time\" content=\"2025-09-01T03:58:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-01-09T01:55:34+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/flowpower.com.au\/residential\/wp-content\/uploads\/Flow-Power-Solar-Solar-Feed-In-Tariff.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1800\" \/>\n\t<meta property=\"og:image:height\" content=\"1350\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Pari Arora\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta 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