Victorian households’ hip pockets are copping a major hit in the form of unavoidable fixed charges for electricity and gas.
An ABC article states Victorians are paying up to $1,000 a year in fixed charges for gas and electricity according to a report by St Vincent de Paul. On average, dual-fuel Victorian households are paying around $700 a year even before they switch an appliance on.
The charity’s Gavin Dufty says that over the past five years, fixed charges for electricity have more than doubled and for gas, increases of over 60 per cent have occurred.
The electricity sector’s greed has come back to bite it, and now it’s scrabbling to make up the shortfall resulting from consumers who have made efforts to reduce their mains grid power consumption for financial and/or environmental reasons.
With regard to gas, that sector may soon see an exodus of customers as the economic case for ditching gas in favour of electricity gains strength.
In New South Wales, a transition from gas to electric heating could start as soon as the cooler months are upon us as home-owners grow increasingly aware reverse cycle air-conditioners can heat their home more cheaply than gas. Another common gas appliance with an electric competitor is the cooktop, with induction cooktops coming up trumps on price and performance.
A fully-electric household can then reduce their energy bills even further by installing solar power systems, solar hot water systems or heat pumps.
Any plans for power companies to slug Victorian solar households with additional charges look as though they will fail. According to the ABC report, Victorian Energy Minister Lily D’Ambrosio says the Labor Government will ban retailers from applying high supply charges for customers with solar power systems and the Essential Services Commission will be granted extra powers to fine any company doing so.
Looking to the future and as energy storage systems drop in price, solar households will increasingly use the mains grid as a backup and in some cases ditch the grid altogether. Competitively priced battery storage systems are already available in Australia, such as AUO’s PowerLegato and the SMA Flexible Energy Storage System.
