We don’t like the word “crisis” much as it can cause a bit of panic. But it’s certainly a highly volatile time for the energy market. Energy’s generally more expensive now than it’s been for a long time, and with the other cost of living pressures, many Australians are struggling. While it may seem like doom and gloom in the news, we wanted to reassure you on a few things.<\/p>\n\n\n\n
Ultimately, it\u2019s the cost of fossil fuels that’s driving up prices<\/a>. 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 \u2013 prices go up. <\/p>\n\n\n\n The war in Ukraine and extreme weather events have both played a role. Let’s break these down. <\/p>\n\n\n\n It might be hard to imagine how Russia\u2019s 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 \u2013 just like other commodities like gold or petrol. <\/p>\n\n\n\n Gas is also used to power electricity stations, so the rising price of gas often affects the cost of generating electricity as well. <\/p>\n\n\n\n As we saw above, low supply and high demand is often what pushes the cost of fossil fuels up. The extreme weather we\u2019ve 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. <\/p>\n\n\n\n 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. <\/p>\n\n\n\n We take our responsibility as one of Australia\u2019s largest energy retailers very seriously. We’re committed to doing right by the community<\/a> and our customers, especially those experiencing vulnerability. At the same time, it\u2019s our goal to lead the energy transition<\/a> and achieve net zero carbon emissions by 2050<\/a>. <\/p>\n\n\n\n For customers in financial hardship<\/a>, who may be struggling with their energy bills, we have tailored support available<\/a> through our Power On program<\/a>. We strongly encourage anyone in need to contact us<\/a> so we can help. <\/p>\n\n\n\n We also protected those in our Power On program from the impact of price increases in July 2022. <\/p>\n\n\n\n Moving away from expensive fossil fuels and towards more sustainable energy sources<\/a> is an essential step to keep energy more affordable in the long term. It\u2019s what people are calling The Energy Transition<\/a> \u2013 and our ambition is to lead it by accelerating investments in renewables and offering our customers smarter, cleaner solutions. <\/p>\n\n\n\n We\u2019ve announced plans to exit coal-fired power generation<\/a> up to seven years earlier than planned, bringing forward the closure of our Eraring Power Station to potentially as early as August 2025. We\u2019re progressing plans for a 700 MW battery<\/a> 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. <\/p>\n\n\n\n We also have our virtual power plant<\/a> (VPP), which connects a network of hundreds of power devices like solar and batteries<\/a> across the country, as well as Origin Zero<\/a>, which helps large businesses transition to cleaner energy solutions. <\/p>\n\n\n\n Origin\u2019s first Climate Transition Action Plan<\/a>, launched in August 2022, outlines our ambition to lead the energy transition. <\/p>\n\n\n\n We\u2019re always trying to find ways to give our customers more value for money. <\/p>\n\n\n\n There are some things you can do, and we can help you with, that can stack up to big savings over time. <\/p>\n\n\n\n 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<\/a> 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<\/a> will help show you what to look out for.<\/p>\n\n\n\n It can be easier said than done, we know, but here are five ways to cut down on usage: <\/p>\n\n\n\n Get ahead of your bills by making smaller, more regular payments<\/a> towards your account. Our clever Easipay<\/a> robots crunch the numbers to estimate your bills and break that down into more manageable weekly, fortnightly or monthly instalments. You\u2019ll pay the same amount every time, so it\u2019s easier to budget. If you\u2019re paying too much, your account will go into credit \u2013 and the idea is that credit will cover you in the winter or summer when you\u2019re using more energy. Or, you can have the credit refunded as cash. If you\u2019re paying too little, we\u2019ll contact you well in advance to let you know that your instalments need to change. <\/p>\n\n\n\n Hopefully this has helped you understand the energy crisis a little more, and reassured you that we\u2019re taking big steps to help our customers get through it. If you need anything at all, or just want to chat, that\u2019s what we\u2019re here for. We\u2019re only an email away at hello@origin.com.au<\/a>. <\/p>\n\n\n\nWar in Ukraine<\/h3>\n\n\n\n
Extreme weather and coal plant outages<\/h3>\n\n\n\n
What’s Origin doing about it?<\/h2>\n\n\n\n
Protecting our most vulnerable customers<\/h3>\n\n\n\n
Accelerating towards renewables<\/h3>\n\n\n\n
More value for our customers<\/h3>\n\n\n\n
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Our top tips for reducing your energy bill<\/h2>\n\n\n\n
Make sure you’re on the right plan<\/h3>\n\n\n\n
Adopt energy-efficient habits<\/h3>\n\n\n\n
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Consider a payment plan<\/h3>\n\n\n\n
We’re here to help<\/h2>\n\n\n\n