Residents of the ACT are facing a significant electricity price increase from the beginning of July this year that will add hundreds of dollars onto the average annual power bill.
The Independent Competition and Regulatory Commission (ICRC) yesterday published its draft determination (PDF), which states based on information available up until the end of February, the average nominal increase for 2017-18 would be 10.9%.
However, it also warns:
“If wholesale prices continue to remain high the final decision could see even higher price increases”
The ICRC says the Large Scale Renewable Energy Target (LRET) and Small-scale Renewable Energy Scheme (SRES) make up just 7.38% of cost of electricity. The major components are network costs (43.32%) and wholesale energy purchase cost (31.48%). While the latter is increasing, it has been reined in by renewables.
“Despite the proposed increase, the ACT will continue to have some of the lowest electricity prices in the country. The bulk of today’s proposed increase is outside the control of the ACT and similar price rises will be felt by most other Australian states,” said ACT Minister for Climate Change and Sustainability Shane Rattenbury.
The Minister pointed to Federal Government actions stagnating energy investments and the increasing cost of gas generation as the culprits behind the rise.
“Thankfully, renewable energy generation is immune to fossil fuel price hikes and is keeping downward pressure on wholesale electricity costs. We know that Australia’s energy future is in renewables, and that’s why the ACT Government continues to invest in renewable energy generation and storage.”
The ACT is on track to meeting a 100% renewable energy goal and is in the midst of an energy storage rollout that will see 5,000 solar battery systems installed by 2020.
As well hosting more than 174,000 solar panels in utility scale projects along Canberra’s solar highway, the ACT boasts approximately 17,575 small scale solar power systems.
The ACT’s effort on renewables continues to fail to impress Deputy Prime Minister Barnaby Joyce though, who on Tuesday morning said it was “completely insane” – even though the Canberra Liberals have also thrown their support behind it.
Minister Rattenbury followed up with an open letter to Mr. Joyce, detailing his own take on what crazy is.
