A new report states the “Big Three” electricity retailers in Australia are charging two to three times more to sell electricity in four Australian states than the ACT’s regulated retailer.
The Big Three refers to AGL Energy, Energy Australia, and Origin Energy.
The report, prepared by CME and commissioned by grass-roots activist group GetUp!, paints a disturbing picture of the situation in New South Wales, Victoria, South Australia and Queensland.
“This report shows that in those parts of the NEM where retail markets have since been fully deregulated (opened to competition), charges for retailing electricity to households have grown to be a far bigger portion of the household electricity bill than the cost of producing the electricity those households consume,” it states.
The full report, “Australia’s retail electricity markets : who is serving whom?” can be downloaded here (PDF). The report follows earlier research carried out by CME indicating Australia has the world’s most overpriced electricity before tax.
GetUp! reacted strongly to the latest report, particularly in relation to South Australia, where the Big Three serve the majority of the market – around 80 per cent.
“This has huge impacts for people struggling to pay unaffordable energy bills,” said the group’s Environmental Justice Campaign director Miriam Lyons.
“Further lining the pockets of energy executives comes at the expense of Australian families.”
According to the ABC report, GetUp! states the Big Three were charging South Australians a markup of $650 annually, which is approximately double what customers were paying for the actual generation of the electricity.
South Australians were recently slugged with yet another significant increase in electricity costs, along with Victoria and to a lesser degree, Tasmania.
This latest report may not do much to improve the perception of electricity retailers with Australian families, with perhaps more considering gaining a level of energy independence by installing house solar panels and battery systems.
According to solar provider Energy Matters, a suitably sized and well-designed solar power system can reduce mains grid consumption by up to 50% and with battery storage added, up to 80% – depending on installation and electricity consumption scenario.
Energy Matters provides a free online solar + battery calculator that can provide a general idea of how much a household or business can reduce mains grid power reliance.
Those considering going solar may want to do so soon, with a significant solar subsidy reductions not too far off.
Top Right Image Credit: BigStock
