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Electricity bills to go up again – by 21 per cent in the city

Brian Robins
June 13, 2012 – 3:17PM

Household electricity prices are to rise by up to 21 per cent from July 1 – or about $7 a week – with the carbon tax adding to rises already signalled due to spending to upgrade the network.

Gas prices are also to rise, by up to 15 per cent, again largely due to the carbon tax.

AGL customers will pay an extra $2.03 a week, on average, equal to $104 a year, the Independent Pricing and Regulatory Tribunal said.

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All rises, both gas and electricity, are to take effect from July 1.

In its final decision released today, IPART said heavy spending to upgrade the electricity network, coupled with the impact of the carbon tax, was driving electricity prices higher.

The tribunal called for changes to limit future price rises.

Prices will rise by an average of 18 per cent across the state, which is higher than the interim decision of an average 16 per cent, with this increase due to higher than expected costs to generate electricity.

Customers of EnergyAustralia, who mostly live in the inner city and eastern suburbs, will face the highest rises of 20.6 per cent, or $364 a year for most households.

Most rural households will face rises of up to 19.7 per cent ($8.21 a week, or $427 a year), while customers of Integral Energy, who mostly live in Sydney’s western suburbs, face an 11.8 per cent rise ($4 a week, or $208 a year).

These rises will hit customers who are still on regulated tariffs, although not those who have switched accounts to rival suppliers. Households still on regulated tariffs account for about half of the total.

“There are aspects of the National Electricity Rules and the National Electricity Law that could be changed to reduce pressure on prices and to make sure that expenditure on the electricity network is efficient,” IPART chairman Dr Peter Boxall said.

“We’ve also outlined some areas around reliability standards, green schemes, and subsidies that could be reviewed to limit future price increases.”

The primary driver in the rising prices is heavy spending to upgrade the electricity network, the so-called “poles and wires”, he said. This accounts for around half the price increase.

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Trackbacks/Pingbacks

  1. Richardson and Wrench Mosman and Neutral Bay Real Estate » Blog Archive » The World Has Changed Faster Than We Think - June 15, 2012

    […] Electricity bills to go up again – by 21 percent in the city so abolish this stupid Carbon Tax. It may be fine to blame past state Governments for failing to upgrade the electricity networks however those Governments were Labor Governments – which today only exist by name not numbers. Throw in the billions of dollars being wasted with the ongoing daily asylum arrivals – the federal government needs to look in its own backyard before it starts handing out advice on all things pertaining to productivity. […]

  2. The Rant #11: Oh Little Electron, Why Art Thy So Costly? | Deknarf: The Australia Blog - June 20, 2012

    […] Electricity bills to go up again – by 21 per cent in the city (wrc559.com) Share this:EmailPrintShare on TumblrDigg Pin ItLike this:LikeBe the first to like this. […]

  3. RWM Mosman and Neutral Bay » Blog Archive » The World Has Changed Faster Than We Think - June 2, 2013

    […] Electricity bills to go up again – by 21 percent in the city so abolish this stupid Carbon Tax. It may be fine to blame past state Governments for failing to upgrade the electricity networks however those Governments were Labor Governments – which today only exist by name not numbers. Throw in the billions of dollars being wasted with the ongoing daily asylum arrivals – the federal government needs to look in its own backyard before it starts handing out advice on all things pertaining to productivity. […]

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