Australians set for $660 power bill price rise
Energy retailers are expanding their hardship programs amid speculation of a 30 per cent rise in power prices that could tip struggling households over the edge.
EnergyAustralia has announced a one-off $10 million injection into its hardship program, after conceding that energy prices wouldn’t be easing any time soon.
EnergyAustralia managing director Catherine Tanna wouldn’t elaborate on the upcoming price hikes, but told Fairfax ballooning wholesale electricity costs were partly to blame.
"It's very complex, but wholesale prices have roughly doubled in the past year and they make up 25 per cent of the customers' energy bill, and it's one big reason, but there are many," she said.
Tanna said strengthening EnergyAustralia’s hardship program was the first step to helping Australians who will be worst hit by the significant power rises.
A perfect storm of factors is driving Australian electricity bills through the roof, including the closure of large coal-fired power stations, a growing demand for gas from LNG projects in Queensland, and general generator reliability issues.
St Vincent de Paul's Gavin Dufty commented on EnergyAustralia’s announcement, telling Fairfax households should brace themselves for a bumpy ride.
"EnergyAustralia's announcement indicates to me that it's forecasting poorer cash flow, meaning people will be paying later because they're struggling, and forecasting a greater number of people being in severe energy distress and needing intense support," he said.
"Ultimately, this means there will be more disconnections and people will be going without this essential service."
NSW Energy Minister Don Harwin said he was concerned about the projected bill rises, and reminded households to be aware of the rebate schemes available.
"We added a further 30 community welfare organisations that offer $50 EAPA vouchers to help struggling customers pay their gas or electricity bills,” he said.
"We are also currently finalising the largest energy efficiency package in the country, which could save consumers $17 billion by 2050, and put downward pressure on prices.
"Our Draft Plan to Save NSW Energy and Money includes new measures to provide more efficient appliances, and other retrofits for homes and businesses."
What are your views? DO you think enough is being done to counter electricity price rises?