The energy crisis and what we can do about it

The good news

We’ve been supplying Aussies with energy for over 20 years and we’re used to dealing with the challenges of the energy market.
It’s highlighted the need to accelerate the switch away from fossil fuels and towards renewables.
There are ways we can help you stay on top of your energy bills – talk to us about payment plans, concession or hardship options, and tailored energy efficiency tips.

What’s causing the crisis?

Ultimately, it’s the cost of fossil fuels that’s driving up prices. The cost of coal and natural gas reached record highs this year, and Australia still relies on those fossil fuels for most of its energy. Just like other commodity markets, when supply decreases and demand increases – prices go up.

The war in Ukraine and extreme weather events have both played a role. Let’s break these down.

War in Ukraine

It might be hard to imagine how Russia’s invasion of Ukraine can affect prices here in Australia, but that conflict has upset the energy markets worldwide. Russia is one of the largest exporters of fossil fuels in the world, particularly natural gas and oil. When sanctions were put on Russian exports, other countries then had to scramble to find that energy elsewhere. When demand is high and supply is low, prices go up – just like other commodities like gold or petrol.

Gas is also used to power electricity stations, so the rising price of gas often affects the cost of generating electricity as well.

Extreme weather and coal plant outages

As we saw above, low supply and high demand is often what pushes the cost of fossil fuels up. The extreme weather we’ve had this year has caused supply issues, as well as increased demand caused by heating and cooling needs. Heavy rain impacted coal mining in NSW and QLD, while an early and frosty winter in 2022 increased demand for gas and electric heating. Then, to top it all off, there were unplanned outages at major coal plants in the middle of the year- mostly because of old power plants with ageing equipment.

Where there’s less coal to create electricity, there’s an increased demand on gas-fired power stations, which again drove higher natural gas prices.

What’s Origin doing about it?

We take our responsibility as one of Australia’s largest energy retailers very seriously. We’re committed to doing right by the community and our customers, especially those experiencing vulnerability. At the same time, it’s our goal to lead the energy transition and achieve net zero carbon emissions by 2050.

Protecting our most vulnerable customers

For customers in financial hardship, who may be struggling with their energy bills, we have tailored support available through our Power On program. We strongly encourage anyone in need to contact us so we can help.

We also protected those in our Power On program from the impact of price increases in July 2022.

Accelerating towards renewables

Moving away from expensive fossil fuels and towards more sustainable energy sources is an essential step to keep energy more affordable in the long term. It’s what people are calling The Energy Transition – and our ambition is to lead it by accelerating investments in renewables and offering our customers smarter, cleaner solutions.

We’ve announced plans to exit coal-fired power generation up to seven years earlier than planned, bringing forward the closure of our Eraring Power Station to potentially as early as August 2025. We’re progressing plans for a 700 MW battery on the Eraring site (which, if it goes ahead, will be one of the biggest battery projects in Australia) and have around 1,600 megawatts (MW) of solar farm development projects secured to date.

We also have our virtual power plant (VPP), which connects a network of hundreds of power devices like solar and batteries across the country, as well as Origin Zero, which helps large businesses transition to cleaner energy solutions.

Origin’s first Climate Transition Action Plan, launched in August 2022, outlines our ambition to lead the energy transition.

More value for our customers

We’re always trying to find ways to give our customers more value for money.

Our energy customers can save up to 12 cents a litre on fuel at EG servos when they combine the Origin offer with EG and Woolies offers. See the full details and terms of the fuel discount offer.
Our Spike program lets smart meter customers earn points for saving electricity, which you can convert to gift vouchers or PayPal cash.
With our Origin Everyday Rewards plan you can earn Everyday Rewards points for every dollar you spend on your energy usage and supply charges, and put the points towards money off your weekly Woolies shop.
Special discounts off brands like The Good Guys and JB Hifi when you move house with us. Available to energy customers via our Origin Rewards program.
Exclusive discounts off Origin internet plans for our energy customers.

Our top tips for reducing your energy bill

There are some things you can do, and we can help you with, that can stack up to big savings over time.

Make sure you’re on the right plan

Are you on the best rate possible? It never hurts to check, even if you changed plans recently. At Origin, there are no exit fees so you can change plans whenever you like. Look closely at the usage and supply rates when you compare. If you use a lot of energy, lower usage rates might be more important to you. If you don’t use heaps, a lower supply rate might suit you better. You can also look out for extra perks like Everyday Rewards points. Our handy checklist will help show you what to look out for.

Adopt energy-efficient habits

It can be easier said than done, we know, but here are five ways to cut down on usage:

A fully insulated home, compared to a non-insulated home, can reduce the cost of heating and cooling by as much as 50%. Windows let a lot of heat in and out. Try to keep blinds or curtains closed, and shade the outside of the window with sails or patio umbrellas if you can. Rolls of insulation are also relatively inexpensive – you’ll get the most bang for your buck making sure your ceiling is well-insulated.

Fridges and freezers are some of the biggest energy guzzlers in the home. Make sure the temperature isn’t set too high (-18C for freezers and 5C for fridges), clean the condenser coils behind/underneath at least twice a year, and always let food cool down naturally before you put it in the fridge.

Seal up drafts to make a difference to heating and cooling costs. Screw-on door seals, caulk, silicone, self-adhesive weather seals or door snakes are inexpensive ways to seal up doors and windows. Make it your next weekend project!

Adjust the thermostat. The air conditioning sweet spot is 24C in summer, and 18C for the heating in winter. Any more than that could start to mean bigger bucks on your bill.

Hot water costs make up around 16% of the average energy bill in Victoria. Install a low-flow shower head, challenge yourself to take showers that last less than two songs, and wrap the pipes coming off the hot water system in insulation.

Consider a payment plan

Get ahead of your bills by making smaller, more regular payments towards your account. Our clever Easipay robots crunch the numbers to estimate your bills and break that down into more manageable weekly, fortnightly or monthly instalments. You’ll pay the same amount every time, so it’s easier to budget. If you’re paying too much, your account will go into credit – and the idea is that credit will cover you in the winter or summer when you’re using more energy. Or, you can have the credit refunded as cash. If you’re paying too little, we’ll contact you well in advance to let you know that your instalments need to change.