Home: Renewable Energy News: Regional NSW Power Bills Jump 154% In 7 Years

Renewable Energy News

THURSDAY 16 AUGUST, 2012 |

Regional NSW Power Bills Jump 154% In 7 Years

by Energy Matters

An investigation by Business Day has found the average electricity bill for a regional NSW customer has risen by 154% since 2005.

According to The Sydney Morning Herald's business columnist, Michael West:

"The 'gold-plating' of Australia's power grid is exacting a far heavier toll on electricity customers in rural areas than in the cities. Since 2005, the average bill for a customer in regional NSW has risen by 154 per cent to $2520. This compares with an average city customer's bill of around $1800."

Mr West says faulty forecasting has played a role - power companies have been basing spending decisions on their own forecasts of future consumption of electricity, but power demand has been decreasing.

Research published by REC Agents Association (RAA), states over the last three years electricity consumption in the eastern states' National Electricity Market (NEM) has dropped by 3.2 % .

The explanation may provide little comfort for households reeling from continuing electricity bill shocks, particularly given recent research indicating the escalating use of solar energy and energy efficiency are contributing to reducing wholesale power prices across Australia.

Since the beginning of July this year, average regulated retail electricity prices in New South Wales have jumped 11.8% to 20.6% across different power supply regions. According to figures from IPART, from July 1, Energy Australia residential customers could be paying $364 more annually for electricity on average, Integral Energy customer $208 more and Country Energy residential customers will need to scrape up an additional extra $427 a year.

For small business customers, average annual bill increases will be even higher.

The latest power price pain may motivate more New South Wales households to turn to solar power. According to Energy Matters, a 2kW solar panel system installed in Sydney can achieve savings of around $520 a year and a larger system, even more. Similar savings can be gained elsewhere in the state.