Single parents and seniors living alone are being hit hardest by Western Australia’s rising energy costs, a new report shows.
Released today, the Bankwest Curtin Economics Centre report shows over 10 per cent of some household incomes is spent on gas and electricity.
Western Australians are turning to solar power to offset rising tariffs. Rooftop solar capacity is tipped to increase from 730MW to a potential 2000MW by 2022.
The report found that, collectively, households are soon to become the biggest electricity provider in the state. WA’s investment in large-scale solar is described as “meagre”.
‘Energy poverty’ is becoming a reality
According to the report, Perth electricity prices almost doubled between 2008 and 2014.
The state’s fixed supply charge tariff nearly doubled on July 1 2017, from 48.60c to 94.91c per day. This was up 95 per cent on the 2016 tariff.
Household electricity costs have increased by more than 10 per cent annually over the past four years. The near doubling of the fixed supply charge caused the recent increase of 10.4 per cent in 2017.
The findings show that high energy costs impose a significant burden for many households.
This is especially true for those on low incomes. Single parents, and elderly single men and women are more likely to be in “energy poverty” than other households.
The report also found WA’s electricity generation sourced from renewables increased from 2.9 to 7.1% in the six years to 2014-15. One in four suitable dwellings have rooftop solar PV.
Solar solutions still out of reach for some
According to the report, some households are unable to take up cost-saving options like solar system installation. This is due to issues around affordability, dwelling suitability or renting.
In addition, there is a clear socio-economic gradient in household solar installations in Western Australia.
Rooftop solar PV is installed in only 7.4 per cent in areas in the lowest socio-economic decile, and 16 per cent in the second lowest decile.
While solar and battery storage systems could offset electricity costs, the report warns that households without solar PV access could be left to face peak period pricing.
