Electricity prices already rising in 2012

4th Jan 2012

While the year in barely underway, electricity prices have already seen an increase in some parts of the country.

However, the rise may not come as much of a surprise, as a national energy body warned of potential jumps in cost.

The Energy Users Association of Australia (EUAA) voiced its concerns regarding the impact of the federal government's energy schemes – such as the Small-scale Renewable Energy Scheme (SRES) – on the cost of electricity last week.

"We have examined the outlook for electricity costs under the SRES and – based on conservative assumptions – found that the SRES is likely to add $9.58 per megawatt hour to the cost of electricity in 2012," EUAA executive director Roman Domanski said (December 29).

Mr Domanski claimed that the Large-scale Renewable Energy Scheme (SRES) would also add $3.00 per megawatt hour to the price of electricity – "for a combined increase of $13 per megawatt hour".

"To put this in context, it is around 8 per cent on top of typical retail electricity prices at a time when everyone’s electricity bill is already increasing steeply, stretching the budgets of businesses and families," he continued.

While Mr Domanski acknowledged that there was a price to be paid for investing in renewable energy, he believed that the large take-up of solar installations eligible for credits under the SRES was a contributing factor to the potential increase in power prices.

"The costs of these schemes are borne by electricity users who are already seeing their electricity bills rise dramatically due to factors such as very large increases in network charges (the cost to transport electricity) and (from next year) the carbon tax."

Households in Victoria saw a rise in power bills of almost nine per cent – almost three times the rate of inflation – on January 1 due to retailers increasing fixed supply charges.

According to the St Vincent de Paul Society, the three leading energy providers in the state – who provide power to almost 70 per cent of the state – increased the cost of their service.

A spokesman for state energy minister Michael O'Brien told the Sydney Morning Herald (December 23) that the increases in Victoria – while significant – were below those in other states.

Households may wish to use the New Year as the opportunity to rely less on the power grid and instead utilise solar panel systems for their energy needs.

Posted by Mike Peacock – Solar correspondent

All solar power news categories

Government Rebate & Regulations
Solar Power & Technology


More Solar Power & Technology

Australia to be a part of huge Asian renewable energy growth
SunPower steps up to make solar more affordable
Canberra makes strides toward carbon neutrality
GTM puts solar's massive growth in perspective
Examining Australia's falling solar PV rooftop prices
Australia's shift toward renewable energy picks up the pace
Australia shines at solar decathlon
University of Queensland tapped as lead researcher on massive solar project
100 per cent renewable energy is possible in 10 years, environmental group says
Climate Commission releases report on solar progress
Aussie government actually shows spine for solar power
Be gone, skeptics: One million solar installations and counting
Australia embarks on its greatest solar journey ever
Australia looks to solar thermal for commercial success
Solar power helps King Island reach 100% sustainability
Australians 'heavy supporters of solar power'
Mildura solar plant officially unveiled
Solar power trumps other renewables in Australian minds
Sunshine Coast solar farm "fantastic initiative"
Sunshine Coast cashes in on namesake with solar plans
Energy storage 'could maximise solar power utility'
Solar powered family car - a world first?
Code of conduct for solar installers in the works
'Stop punishing households' for solar PV
Australian solar companies 'adjusting well'
Australian mining 'next solar frontier'
"Rooftop revolution" underway across Australia
Global PV market emerging from sluggish period
Royalla solar farm receives final approval
Leadership challenge a "debacle" for Australian solar power
Solar power giving global renewables a helping hand
Australia's largest CPV solar power plant up and running
Renewable energy misinformation "staggering"
CEC: Don't underestimate consumer desire for solar
Setting energy efficient examples on TV
Solar PV brightening up household bills
World's largest solar powered boat on the move
Climate change is heating up
The global solar power shift
New solar tech win for NSW
Industry orgs praise City of Sydney solar efforts
Clean Energy Council supports Regional Renewables scheme
Asian nations emerging as PV leaders
Solar PV demand continues to grow
Regional areas of Australia to receive more renewables
Australia's significant renewable energy growth
Solar panel reprieve for Queensland
New funding for solar research
Find love with sustainable speed dating
New Victorian solar power deal
 To get your quotes, please enter your postcode: