You’ve probably seen the news about the conflict in the Middle East, because it’s on every news channel, radio show, and newsfeed. What you might not have connected yet is that international conflicts like this one and the 2022 Ukraine war before it, have a habit of pushing up electricity prices as far away as Australia. Fuel shortages and price rises have an impact on more than just petrol at the bowser.
Here’s why global gas disruptions end up on your electricity bill, and what you can actually do about it.
Wait – I don’t use gas. Why does it affect my power bill?
Great question. Gas is only used to generate around 15-20% of Australia’s electricity, but it plays an outsized role in setting the price of electricity for everyone.
Think of it like this: the electricity grid runs a silent auction every five minutes. All the electricity generators, including coal, gas, solar, wind, put their electricity up for bid by your energy retailer. The cheapest sources get bought and used first. But here’s the catch: the most expensive generator needed to keep the lights on at any given moment sets the price for everyone, including the cheaper electricity sources.
Gas generators are typically among the most expensive. That’s why they’re only called on at peak periods, like hot summer evenings when everyone gets home and turns on the air conditioning. So when gas is expensive, it pushes up the price of electricity across the board, even for power that was generated by free sunshine or wind.
There’s another effect on top of that. Even when a coal plant is the one setting the price, coal generators often bid strategically in line with prevailing market prices, which are frequently influenced by gas. So a gas price rise can lift the whole market, not just gas generation.
The result? Research from Griffith University found that gas often influences a majority of electricity pricing periods in the national grid. Some analyses estimate up to 50-90% rise in certain conditions, despite generating only around 15-20% of Australia’s electricity.
So how much does a gas price rise actually add to your bill?
For every $1 rise in gas prices, the average household electricity bill goes up by roughly $20-50 per year – and in a serious spike, it can be $200 or more per year.
The technical version: each $1/GJ increase in wholesale gas causes wholesale electricity to rise by around $8 per megawatt hour (MWh). Since wholesale electricity makes up around a third of your bill, that works out to roughly $20/year for a typical home. It varies depending on your usage and where you are, but the direction is always the same: gas up, bill up.
That sounds manageable. But gas prices don’t move by $1; they move by $5, $10, or more during a real disruption. After Russia invaded Ukraine in 2022, east coast gas hit $24-27/GJ and average electricity spot prices more than doubled compared to the year before.
And gas isn’t the only pressure. Oil and diesel prices have surged alongside gas in the current crisis – and diesel is what powers the trucks, ships and machinery that keep the entire supply chain moving, including the coal and freight networks that feed the electricity grid. When diesel gets expensive, those costs eventually flow through too, just more slowly.
Doesn’t Australia have a gas price cap to protect us?
Yes – sort of. Here’s the simple version.
After gas prices went haywire at the start of the Ukraine War in 2022, the Federal Government introduced a $12/GJ gas price cap to stop gas producers charging whatever they liked for new supply contracts. It’s now part of something called the Gas Market Code of Conduct.
But there are two important limits to what it can do:
- The cap only applies to long-term supply contracts, not to the spot market. Think of it like a speed limit that applies to long-haul trucks but not to short local trips. A long-term contract is where a producer and a buyer agree upfront to a price for the next year or two; those deals can’t exceed $12/GJ. But the spot market, where gas is bought and sold day to day at whatever price the market sets, has no cap at all. Gas generators that need to buy gas at short notice go to the spot market and pay whatever it costs during that five minute auction. During a global disruption, that spot price can be well above $12/GJ, and nobody subsidises the difference. For example, during the Ukraine war in 2022, east coast spot gas prices spiked to around $40/GJ at times; more than three times what the cap is set at today. The generator just pays more, bids higher into the electricity market, and that’s how the cost reaches your bill.
- Even the capped portion still produces expensive electricity. Gas generators need to burn roughly 7 to 13 units of gas to produce one unit of electricity (depending on the type of plant). So even at $12/GJ – the capped price – a gas plant’s cost to generate electricity works out to $84 to $156/MWh before any profit margin. That is already higher than typical pre-crisis electricity prices.
The bottom line on the cap: It covers some of the gas market, some of the time. Long-term contracts are anchored at $12/GJ; that’s real protection. But the spot market (which is what generators fall back on when they need gas urgently) is completely uncapped and can go much higher during a crisis. And even when gas is at the capped price, it still produces electricity expensive enough to push your bill up. The cap stops a catastrophic spike; it doesn’t stop a significant one.
It’s also worth knowing that electricity pricing rules vary depending on where you are and which electricity retailer services your area, so the exact impact on your bill will differ from household to household.
When does this actually show up on my bill?
Most Australian households and small businesses are on annual electricity contracts that reset on 1 July each year. The Australian Energy Regulator (AER) sets a reference price, called the Default Market Offer, every May, which takes effect July 1. Even if you’re on a market deal rather than a standing offer, most retailers reprice their plans around the same time.
This means a gas price spike happening right now may not show up on your bill immediately. But it will show up when your contract resets – because the regulator sets that new price using current market data.
Larger businesses are often more exposed than households. Many big commercial and industrial customers negotiate their own electricity supply contracts directly; shorter-term deals that get repriced more frequently than once a year. When wholesale prices spike, their contracts come up for renewal sooner, and they feel the increase much faster – sometimes within weeks.
So where does solar fit into all this?
The world was already moving towards renewables; not just for environmental reasons, but because solar and wind are now the cheapest forms of new electricity generation in Australia.
What global energy disruptions keep reminding us is that fossil fuel prices are unpredictable. They’re linked to geopolitics, shipping routes, international markets, and forces entirely outside our control.
Solar on your home gives control and independence, instead of a shock in the mail. A solar system installed on your roof generates electricity at zero fuel cost, no matter what happens to global gas prices, oil prices, or anything in between. The payback on that investment gets shorter every time electricity prices rise.
If you’ve been sitting on the fence about solar, it’s worth at least understanding the numbers for your specific situation.
Contact us or give us a call on 07 4642 0017 or to request a free quote and we’ll help you understand your current electricity needs and how solar can help you meet them.
Step 1: Downloading Your Energy Bills
This is the straightforward part and gives us the basic information we need to create a quote for you.
How to Access and Download Your Bills:
- From your main dashboard, navigate to the “Online Services” section
- Look for “View my bills” or similar option
- You can see recent bills listed with their issue dates and billing periods
- Each bill row has a download icon (arrow pointing down) on the right side
- Click the download icon for each bill you want to save
- The bills download as PDFs showing your charges, usage summary, and tariff details
What to Download:
- Download 6-12 months of bills if available
- The more historical data you can provide, the more accurate your solar quote will be
- Each bill shows your total usage (kWh) and costs for that billing period
Step 2: Accessing Smart Meter Features for Detailed Usage
Smart meters are being rolled out across Australia, with the majority of homes now having them installed. If you have a smart meter (shown in your dashboard under “Usage & Metering”), you can access much more detailed usage data through interval data – this means your usage is recorded every 30 minutes throughout the day.
Finding Smart Meter Features:
1. From your main dashboard, look for the “Usage & Metering” section
2. You’ll see your meter type listed – if it says “Smart”, you have access to detailed interval data
3. Click on the “SMART METER FEATURES” button
Please note: This will take you to a separate site for detailed usage analysis where you may need to log in again with the same credentials.
Step 3: Downloading Detailed Interval Data
Once you’re in the smart meter section, you’ll see a new interface with several menu options on the left side.
Navigating to Usage Data:
1. Look for “Usage” in the left-hand menu and click on it
2. You’ll see options to select your date range using the “Period” picker
3. You can view data for different time periods:
– Last 7 days (shows detailed intervals throughout each day)
– Custom date ranges for longer periods up to 24 months
Understanding Your Usage Display:
– The system shows three tabs: Energy, Cost, and CO2 Emissions
– You can switch between different time intervals for viewing your data
– The graph shows your usage patterns throughout each day
– Green bars represent electricity you’ve consumed from the grid
– Red/pink bars represent solar electricity you’ve exported back to the grid (if you have solar already)
Downloading Your Usage Data:
1. Select your desired date range (we recommend 12 months for good analysis)
2. The system will display a graph of your usage patterns
3. Look for “Download Graph” or similar button to export this data as a graph or CSV
4. Note: Longer periods may take some time to load depending on your internet connection
5. Weekly views often provide the right balance of detail and system performance for analysis
What This Data Shows Us
From Your Regular Bills:
– Total monthly/quarterly usage
– Your current tariff structure
– Seasonal variations in your energy consumption
– Overall cost trends
From Smart Meter Interval Data:
– Usage patterns throughout each day
– Peak usage times (important for solar system sizing)
– Overnight consumption levels
– Weekend vs. weekday patterns
– How your usage varies seasonally
Making the Most of Your Data for a Solar Quote
When you send us your energy information, here’s what makes it easiest for us to give you the most accurate quote:
What we Need From You
- 12 months of downloaded energy bills (PDFs)
- 12 months of smart meter usage data (CSV file)
- 12 months of smart meter demand profile data (graph)
The smart meter interval data is particularly valuable because it shows us exactly when you use electricity throughout the day. This helps us design a solar system that maximises your self-consumption during daylight hours.
Bonus Data: Usage Patterns
While you’re downloading your data, take a look at your usage patterns. You might notice:
Daily usage peaks often in morning and evening when people are home.
Seasonal variations with higher usage in summer or winter.
Different patterns on weekends compared to weekdays.
Consistent background usage even when you’re not home.
Understanding these patterns helps us recommend the right system size and whether battery storage might be beneficial for your situation.
Don’t Have a Smart Meter Yet?
If your dashboard shows a basic meter rather than a smart meter:
– Your regular energy bills still provide valuable information for solar quotes.
– You may be able to request a smart meter installation through your account.
– We can still design an effective solar system based on your quarterly usage data and similar homes in the area.
Common Questions
What if I’ve only lived here for a few months?
Download what you have – we can work with shorter periods and make reasonable estimates based on similar properties in the area.
My usage has changed recently – should I mention that?
Absolutely. Let us know about major changes like new appliances, electric vehicles, or lifestyle changes.
What Happens Next?
Once you’ve gathered your energy bill data and usage information:
1. Email or bring the files to us when requesting a quote.
2. We’ll analyse your usage patterns and peak consumption times.
3. We’ll design a solar system that maximises your savings based on your actual energy needs.
4. You’ll get an accurate quote that reflects your real usage, not generic estimates.
Let’s Design Your System for your Needs
Your energy retailer’s online portal provides everything we need to design the right solar system for your needs. The combination of your regular energy bills and detailed smart meter data gives us a complete picture of your energy usage patterns throughout the year.
Taking 10-15 minutes to download this information helps ensure your solar system is properly sized for your actual needs. We’d rather design the right system based on real data than work with estimates or blurry photocopies.
Ready to see what solar can do for you? Log into your energy retailer’s portal, download your data, and give us a call. We’ve been helping Queensland families save money with solar since 2012, and we’d love to help you join them.