Chris Bowen targets energy retailers as Opposition blames ‘net-zero obsessed’ Albanese government

While Energy Minister Chris Bowen has referred retailers to watchdogs to investigate surprise power price hikes, the Opposition has blamed the soaring costs on the Albanese Government’s “net-zero obsession”.

The Government had expected most households and small businesses across Australia’s eastern seaboard would see a fall in electricity prices from July 1 after the independent energy regulator announced a drop in the Default Market Offer in May.

The Australia Energy Regulator at the time insisted wholesale energy costs for retailers had not increased, citing easing cost pressures across the supply chain and renewable energy aiding in peak times.

While the costs in some States fell 10 per cent in the wake of the benchmark being announced, as July 1 approaches customers have continued to report retailers issuing notices to lifting fees next week.

As an example, Mr Bowen said household energy bills were coming down because of the default market offer by between 5.4 and 6.9 per cent for Origin customers and by 8.7 per cent for AGL customers in Queensland.

But at a press conference in Canberra on Wednesday about the referral to the competition and energy watchdogs, Mr Bowen said he wanted to ensure the companies were complying with the energy market’s laws — specifically the prohibited misconduct provisions.

“Our message to energy retailers is clear — if your costs are coming down, your customers’ bills should be too,” Mr Bowen said.

“I have asked the regulators to look at those increases to make sure they comply, particularly with the prohibited misconduct provisions in energy market laws. Which require companies to pass on sustained reductions in energy costs through their bills.

“As I said, those laws require energy companies to pass on sustained reductions in energy costs through bills, while allowing them some flexibility in how they do that.”

It comes as the Australian Energy Retailer’s latest quarterly update showed there more households were entering hardship programs

The data between January to March 2026 showed an increase of 36,053 customers entering electrical hardship programs over the past year, while 7333 extra customers sought assistance for their gas bills year-on-year.

The Opposition blamed the soaring cost of energy on the Albanese Government’s renewables plan, with shadow minister Dan Tehan insisting Mr Bowen is “net-zero obsessed” and was “adding to Australia’s cost of living crisis”.

“The latest figures show more residential energy customers are carrying debt, more are entering hardship programs, more are using payment plans, more disconnections are occurring and credit collections have increased,” Mr Tehan said.

“With Australians facing a cost-of-living crisis and after four years in office Chris Bowen should finally admit that his polices are failing.

“Chris Bowen’s net-zero obsession is having a real impact on families trying to decide on what bills they can pay and if they can even afford to use electricity and gas.

“The Government needs to focus on policies that lower energy prices, not ones that continue to see prices increase.”

A spokesman for the sector’s peak body Australian Energy Council said competitive retailers would likely shift their pricing strategies to adapt to this new baseline.

The peak body for the sector also highlighted that less than 10 per cent of residential customers, and 15 per cent of small business customers remain on the default market offer.

“In previous years, the AER set an annual benchmark price through the DMO. This year, the AER has instead set specific tariff components, resulting in higher daily supply charges and lower variable usage rates,” the spokesman said.

“For most customers on the DMO, this has led to lower overall annual bills.

“In the competitive retail market, retailers determine their own prices and product structures.

“When setting market offers, retailers consider a range of factors including network costs, wholesale energy and hedging costs, commercial objectives, competitor pricing and the regulated benchmark.

“Changes to the DMO can influence the broader market by affecting how retailers price their products, structure discounts and communicate value to customers.”

It comes after a push to simplify power bills, with a review released by the Australian Energy Market Commission last week arguing energy pricing has become a complicated headache for the average person to understand.

It found that electricity providers do not always reward customer loyalty with people who don’t actively shop around more likely to have expensive plans.

The political clash over the expected hikes on July 1 is strictly an East Coast issue, as Western Australia remains insulated due to its domestic gas reservation policy and separate, state-regulated power grid.

Origin Energy and AGL Energy were contacted for comment but referred questions to their peak body.