If you’ve been opening your energy bills lately and doing a double-take, you’re not imagining it. Electricity prices across Australia have climbed 7.63% between 2023 and 2025 — well above the general rate of inflation — and further increases are already locked in for 2025–26. Globally, the picture isn’t much rosier: energy market volatility linked to geopolitical tensions, ageing coal infrastructure, and the uneven pace of the renewables transition is putting pressure on household bills from Ardeer to Sorrento.
What many Melbourne homeowners don’t realise is that a big chunk of that bill is being driven not by how much energy costs, but by how inefficiently their appliances use it. Old gas ducted heaters, electric storage hot water systems, and ageing bar or blower heaters are among the biggest culprits — and they’re quietly costing you hundreds, sometimes thousands, of dollars a year more than they need to.
Where the money is actually going
Hot water alone accounts for roughly 20–25% of a typical household’s energy use. An old electric storage hot water system running a resistive heating element is one of the least efficient ways to heat water — essentially converting electricity to heat at a 1:1 ratio. A modern heat pump hot water system, by contrast, moves heat from the surrounding air into the water rather than generating it from scratch, achieving efficiencies of 300–400%. The difference in annual running costs can be $250–$400 per year.
Space heating and cooling tell a similar story. A gas ducted heating system that was installed 15 years ago will have significantly lower efficiency ratings than what’s now available — and with gas prices rising sharply as the state transitions to electrification, that gap is only going to widen. Replacing a gas ducted system with an efficient reverse cycle air conditioner can save around $600 per year on energy bills, according to Energy Victoria.
Rule of thumb: if your hot water system or heating unit is more than 10 years old, there’s a very good chance a modern replacement would pay for itself within a few years — especially with current Victorian rebates factored in.
The global pressure on household energy
Australia’s energy prices don’t exist in isolation. The Russia-Ukraine conflict in 2022 sent global gas prices surging, and Australian households felt the impact even though we’re net exporters of LNG. When global markets spike, so do domestic wholesale prices — because much of Australia’s gas is sold on international contracts.
The good news is that the shift to efficient electric appliances insulates households from this volatility. Once you’re off gas and running a high-efficiency heat pump or reverse cycle system, your energy costs are tied to electricity — which is increasingly being generated by cheaper renewables. The Australian Energy Market Commission projects electricity prices to fall by around 5% over the next five years as more renewables come online.
What Helcro can do for you
At Helcro Electrical, we specialise in exactly this kind of upgrade — assessing what you’re running now, identifying where the inefficiencies are, and matching you with the right technology and available rebates under Victoria’s Energy Upgrades program. We’re not here to sell you something you don’t need. We’re here to show you the numbers.
Ready to find out what your current setup is costing you? Contact Helcro Electrical for a no-obligation energy assessment. We’ll show you exactly where you stand — and what’s available to help.
