Power bills to surge, consumers warned
Updated
A report has warned NSW residents that if an emissions trading scheme becomes a reality, their energy bills will jump by as much as 64 per cent. (freefoto.uk)
Australian consumers are being warned to brace for a surge in electricity prices after New South Wales announced a 30 per cent increase over the next three years.
Western Australia moved last year, announcing a 25 per cent hike.
The managing director of International Energy Consultants, John Morris, says consumers in other states can expect similar price hikes.
"You would expect that all of the states should pay a similar price," he said.
"There'll be variations from state to state, maybe plus or minus 5 or 10 per cent."
The Independent Pricing and Regulatory Tribunal (IPART) has also warned New South Wales residents that if an emissions trading scheme becomes a reality, their bills will jump by as much as 64 per cent.
"Over the next three years the increase will be between $246 and $600, depending on which retailer you take electricity from," IPART's acting chairman Jim Cox said.
"And that is what happens if the Commonwealth does not introduce this Carbon Pollution Reduction Scheme; if it does, there'll be a further $300 of increase on top of that."
With the emissions trading scheme still very much uncertain, the first part of the rise is being put down to higher network prices as well as efforts to bolster the electricity network.
"Obviously it's something that people won't like; they'll have less money to spend on other things," Mr Cox said.
"I think people will look at how they use electricity around the house and see whether they can make some savings.
"They may also be able to reduce the impact of the increase by shopping around a bit and seeing whether they can get a better deal from a competing retailer."
Emissions trading tension
Climate Change Minister Penny Wong has released a statement trying to distance herself from IPART's findings.
"Claims that the Carbon Pollution Reduction Scheme (CPRS) is driving electricity price rises in New South Wales from July this year are simply wrong," the statement read.
There is a belief in Federal Government circles that the New South Wales Government is trying to fatten up the electricity retailers for sale to the private sector.
And Mr Morris agrees with Senator Wong's view that an emissions trading scheme will not necessarily push consumer power prices higher.
"People will be competing to sell electricity and if that means that they need to absorb some of their costs themselves to maintain their margins, then they'll do so," he said.
"Now will they go out of business? No. Will there be any shortfall in generation? No.
"It just means that the existing generators won't be making so much money."
But IPART's Mr Cox has rejected Senator Wong's view on his pricing predictions.
"I think it's certainly true if the CPRS is introduced, electricity prices will go up," he said.
"It's also true that the Commonwealth Government is proposing to compensate people for all the cost of living increases that result from the CPRS.
"So there will be some compensation but that's for all the cost of living increases, not just electricity, and we think that the actual increase in electricity prices in New South Wales [will be higher than] the amount the Commonwealth has allowed in its package for electricity increases."
First posted
Search ABC News
Featured Video
-
Video
A short-film portraying child abuse has been released to put the issue on the national agenda.
-
Video
Some architects say homes should never have been built in the east of earthquake-prone Christchurch.
-
Video
Liberal Wilson Tuckey has criticised the Nationals' Tony Crook, who ousted him from the WA seat of O'Connor.
-
Video
CCTV footage shows two men allegedly stealing a python from a pet store.
The ABC News Online Investigative Unit encourages whistleblowers, and others with access to information they believe should be revealed for the public good, to contact us.
