The announcement of an expected 8.5 to 18.3 per cent rise by July 1 for NSW residents comes after the Australian Energy Regulator delivered its default market offer on May 26, a safety-net which caps how much energy companies can charge households and businesses.

North Wagga man Luke McNorton said the estimated increase could have a catastrophic impact on his finances coming into winter.

Mr Norton is already facing outstanding utility bills from a previous address which he's currently paying off on a payment plan.

"I feel like hearing [about the rise of utilities], I'm never gonna get out of debt," he said.

"The house I'm in at the moment, it's good heating, but I'm really scared to see what the bill's gonna be like."

Mr McNorton lost his job earlier this week but said he still considers himself lucky to have a home and the ability to earn a wage.

"If I was to be on an unemployment benefits, I wouldn't be able to pay my rent, much less gas and electricity," he said.

"I almost find myself rationalising it in my head already what I'd do if the power was cut off. Even then, I'm still considering myself grateful to have a roof over my head."

Local businesses will also feel the pinch if utility costs rise sharply said Splash Laundrette proprietor Rod Krause, whose three locations in Wagga, Kooringal and Turvey Park all heavily depend on electricity and gas.

"We haven't had any price rises since we've opened the shop and I think this is going to force our hand to do that," he said.

"We've continued to absorb the rising costs up to this point.

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"It makes it tougher for us as a business operator and it makes it tougher for the people that need to use our service - what we consider is a pretty essential service for the community."

With prices at Splash Laundrette staying steady for the past seven years, currently, a standard load of laundry and dry will cost you about $12.

Mr Krause estimates that could increase to $15 per load with the estimated rise in utility costs.

"We've also got the continued price rises in both equipment and in spare parts," Mr Krause said.

"Spare parts are going through the roof, the equipment prices have probably gone up by about 50 per cent over the last two years."

Wagga Meals on Wheels manager Julie Logan said she expects plenty of people in the local area to struggle financially with yet another added cost of living increase.

"I'm expecting that there are a lot of people who will not use their heater because it'll be too expensive for them," she said.

"That happens every year, but I expect it'll be worse this year."

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