Australia’s high electricity prices are only set to get worse
Australia electricity price was known as some of the world’s highest electricity prices, and it’s only set to get worse.
Power bills are expected to soar for households across NSW over the next two years, with families increasingly seeking alternatives.
Household power prices have doubled in the last five years, with the Australian Competition and Consumer Commission (ACCC) estimating NSW households will be paying $434.08 more for electricity by the end of 2019.
According to NSW Energy Ombudsman report, high bills have been the number one driver of complaints.
They received a total of 6888 complaints about the most recent quarter, up 22.4 percent when compared to the same period in the previous year.
The report found the most prominent driver for the increase over the last 12 months has been complaints about electricity retailers, a 32.9% increase over that time.
“Coupled with a hostile property market and the rising cost of living, households in NSW are struggling to pay their electricity bills, with some falling thousands of dollars in debt to keep the lights on and the hot water running,” Smart Energy Council chief executive John Grimes said.
“Families with a hefty mortgage are among those most vulnerable, with energy bills consuming a large portion of their household budgets.”
Australian families are now increasingly seeking cheaper alternatives.
Solar energy is a better choice
Dean Spaccavento, the CEO of home energy management start-up Reposit Power, said people are looking to solar and battery storage to reduce their mounting bills.
“We’ve seen a massive boost to the solar battery industry as Australian families try to beat rising power costs.”
A recent Grattan Institute report found that the cost of the electricity grid in NSW had almost doubled over the past decade.
The report, ‘Down to the wire: A sustainable electricity network for Australia’, found the state had spent up to $11 billion more than it should have on the network.
It accused state governments of overspending on the electricity network, with customers in NSW, Queensland, and Tasmania paying $100-to-$400 more than they should as a result.
In an opinion piece for News Corp last week, Grattan Institute energy fellow David Blowers said: “If you live in central Sydney, excessive expenditure in the past is costing you more than $300 a year. If you live in the western suburbs, it is costing you a bit over $100 a year.
“And if you live in regional NSW, you’re really copping it: you are paying a whopping $380 a year for government mistakes of the past.”
He said the NSW government should be compensating electricity consumers, but more than likely won’t based on commitments to other infrastructure projects.
“The government has just had a big payday for leasing those same network businesses. It should use some of that money to reduce your electricity bills.
“But don’t hold your breath.”