You’ve probably seen your electricity bill rise this year. You’re not alone. Across Australia, rising electricity costs in 2025 are making things harder for families, renters, and small businesses.
These price changes aren’t just a quick bump. They’re part of a much bigger trend in the electricity market. And every energy provider is feeling the pressure.
Let’s break down what’s really behind these higher prices and how you might still find the best energy deals for your home.
Wholesale Prices Are Higher
The two largest components of a typical energy bill are wholesale costs and network charges. Wholesale prices are the price energy companies pay to get electricity before they sell it to you. When the wholesale market is volatile, it can make procuring energy at a stable price difficult. Energy retailers pay to hedge against that volatility. The more volatile the market, the more it costs to hedge, and much of the new energy generation that makes up the supply mix comes from intermittent and therefore less predictable or stable generation sources.
All companies buy from the same market, but that doesn’t mean you shouldn’t shop around. Finding the right plan for you can still save you heaps. Great value is available and switching is easy.
Transition Tipping Point
Australia is shifting away from stable reliable coal to cleaner energy like wind and solar. That may be good in the long run. But right now, it adds complexity and challenge.
Old coal plants are closing. New renewable projects are coming, but they’re not ready to meet all our energy needs yet.
So what’s filling the gap? Gas. But gas can be expensive. Especially when demand is high. Using gas as backup is another piece of the puzzle when it comes to energy prices.
If you’re after more control, some affordable electricity plans now give you ways to track usage or adjust your plan to suit your needs.
Network Costs
Another major factor that’s impacting energy is the need to upgrade the national energy grid to ensure it can handle the new way energy is being distributed. The grid was originally designed to send energy one way. Starting at large generators and flowing out towards homes and businesses.
The uptake in renewables means that power is generated and fed into the system all across the network. This means large portions of the network need to be upgraded. These projects cost a lot. Power companies have no choice but to pass any increased costs onto customers, and that’s another way rising electricity costs are hitting everyday Australians.
Even if you’re hunting for the best energy deals, retailers are working with the same market conditions. But that doesn’t mean you can’t still save. Choosing flexible energy plans or no contract energy plans may give you more control over your costs. Some providers also offer energy switch incentives, which can help you get more value.
Conclusion
Yes, this year is tough. But it’s also a step forward.
We’re in the middle of a big shift. Away from old fuels and into a cleaner, smarter energy future. That comes with short-term challenges, but long-term benefits.
At Globird, we’re here to help you through it. We offer affordable electricity plans and help you compare the best electricity plans Australia has available.
Thinking about making a change? Want to check if you’re still on the right plan?
Reach out to the team at Globird today. We’ll help you find options that work for you.