'Shocking' electricity bill rises proposed to pay for ETS
The Australian
December 15, 2009
PROPOSED rises could see electricity bills in NSW shoot up 62 per cent by 2013, with Energy Minister John Robertson admitting even he is shocked by the independent regulator's draft plan.
The Independent Pricing and Regulatory Tribunal (IPART) said in a draft determination released in Sydney today the unprecedented fee increases would be needed to cope with higher network costs and a federal scheme to reduce carbon emissions.
IPART CEO Jim Cox said he had never seen price rises like the ones he now proposed.
“I think this is the biggest increase we have seen,” he said. “I don't think this (price increases) is something that we particularly like.”
Under the proposal, consumers could be paying between $554 and $893 a year more for electricity by July 2013.
“The important point to note here is almost 90 per cent of the increases are due (to an) increase in network charges to pay for higher reliability standards, and also ... the Carbon Pollution Reduction Scheme (CPRS), if indeed it is implemented,” he said.
If the CPRS is not introduced, consumers could still expect their annual power bills to jump by between $242 and $594 by 2013, IPART said.
Mr Robertson said he when he opened the report and saw the proposed price rises, he was “shocked”.
“The government will be going over this report with a fine-tooth comb and making a submission,” he said outside state parliament.
“I am very concerned about the proposed increases in network charges and the effect that's going to have on working families ... people expect to have a reliable electricity supply and they also expect to have electricity that is affordable.”
He said that the government would attempt to lower those costs if possible, because a balance needed to be found between reliability and cost.
However, Mr Robertson said some consumers would receive federal government compensation if the CPRS went ahead.
“(The draft determination) doesn't take into account compensation package that the prime minister has outlined on a number of occasions that families earning up to $160,000 a year will be fully or partially compensated (for the impacts of the CPRS),” he said.
The NSW government has also introduced a $272 million customer assistance package.
Country Energy customers stands to be hit the hardest, with a possible increase of 62 per cent over three years, starting with a 12 per cent price hike in 2010/2011.
Energy Australia's prices are expected to rise by 58 per cent over the three years, while Integral Energy customers are looking at a total increase of 44 per cent.
IPART is calling for public submissions by February and will hold a public hearing on the draft report on February 2, before releasing the final report in mid March 2010.
The Australian Labor Party and Comrade “Kevin 07” always looking out for “working families” and providing “Fresh thinking”
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