Electricity prices in New South Wales jumped 20% on July 1 this year and further, larger increases are likely on the way.
The Independent Pricing and Regulatory Tribunal (IPART) has recommended increases to regulated retail electricity prices ranging from 44% to 62% including inflation over three years starting in July 2010 until 2013.
Over 90% of total price increases are because of increased network charges and the Federal Government’s proposed Carbon Pollution Reduction Scheme (CPRS).
By 2013, the impact of the CPRS will increase electricity costs an average 23% for EnergyAustralia customers, 25% for Integral Energy customers, and 21% for Country Energy customers.
However, even if the CPRS is not introduced, IPART says a typical residential customer will pay an extra $438 a year from 2013 in EnergyAustralia’s area, $242 in Integral Energy’s area, and $594 in Country Energy’s area.
The NSW Government has introduced a $272 million customer assistance package to assist eligible households with the extra expense and the Federal Government has indicated it will provide assistance packages for households as part of the CPRS package.
The recent and proposed price rises will drive home the point that the age of cheap energy is now over and will likely see householders focusing more on energy efficiency measures.
The price rises will also make home solar power systems a more attractive option. In addition to the Federal Solar Credits Scheme that offers rebates of thousands of dollars for residential solar power and also systems for business, the NSW Government recently announced another incentive – the Solar Bonus Scheme.
Under the Solar Bonus Scheme, owners of renewable energy based systems will receive a premium rate for all electricity produced – a very generous 60 cents per kilowatt hour. The system is known as a gross feed in tariff and has been responsible for rapid uptake of solar power in many countries.
Coupled with the Solar Credits rebate, the Solar Bonus Scheme will mean a far more rapid return on the investment in a solar power system. According to figures from the NSW Government., a standard sized system of 1.5kW capacity would generate approximately 2500 kWh annually and would return around $1500 each year under the Solar Bonus Scheme.
While some have blamed solar power incentives for electricity price rises, regardless of the clean energy technology used to switch Australia to a low-carbon economy, it will come at a hefty price. Nuclear power requires massive investment and even the controversial technology of so-called “clean coal“, which probably won’t be commercially viable for 20 years, is very expensive – expecting to add as much as 90% to the costs of coal fired power generation.
For many, the choice for Australia is simple given the similar costs involved – a green power future, or one that is just a lighter shade of black.
Related:
More details on the New South Wales Solar Bonus Scheme
New South Wales solar power specials
Instant online quote for NSW solar power
