It’s not good news for those who had their hopes pinned on pricing pain at the power point reducing anytime soon.
Recently we cleared the air on electricity prices and pointed out that despite promises from the Coalition Government to reduce the cost of electricity, why it may not happen.
Continued upward pressure on the cost of power has less to do with green schemes and renewable energy and more to do with network charges – poles and wires.
The chief executive of the Energy Retailers Association has confirmed the possibility of cheaper mains power possibly being a pipe dream; according to The Guardian stating “that future movements in retail prices will also be influenced by network charges”.
Additionally, any (albeit possibly brief) relief as a result of axing the carbon tax may not be felt until 2015 due to contractual arrangements. Between now and then, if network charges increase, any benefit may be gobbled up.
They say a week is a long time in politics, but with regard to the electricity sector and influencing factors; it’s an eternity – so much could happen between now and then.
The Guardian article states it’s also uncertain the Coalition government will win backing for Direct Action, “leaving some long-term industry observers deeply concerned that Australia could be left with no policy to reduce its greenhouse emissions.”
An element of Direct Action is new solar rebates – however, the number will be capped and apparently geared to low income households.
The uncertainty surrounding Direct Action coupled with the Coalition government being hell-bent on performing yet another Renewable Energy Target review next year may not bode well for existing home and commercial scale solar power incentives; leading to yet another situation where the best time to go solar may be right now.
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