Charlotte Foster
Money & Banking

Energy companies warn of further jump in power bills

Energy company bosses have warned cost of living pressures will increase, with power bills set to soar by 35 percent by next year. 

"Next year, using the current market prices, tariffs are going up a minimum 35 percent," Alinta Energy chief executive Jeff Dimery told The Australian Financial Review's Energy & Climate Summit.

The summit was told that tight supply issues and Russia's invasion of Ukraine have put pressure on wholesale prices and international commodity markets.

The early closure of coal-fired power stations is also creating a rocky transition to renewable energy, bumping up power bills. 

Under the predicted 35 percent rise by 2023, the average quarterly power bill in South Australia would be $514, in New South Wales $480 and for Victorian consumers $430.

This predicted rise is another blow to Aussies struggling with cost of living pressures, after there was an increase of up to 18 per cent in household tariffs on July 1st. 

The winter prices were increased due to the war in Ukraine, and the resounding pressure on the global energy market. 

Climate Change and Energy Minister Chris Bowen told the conference that transitioning to renewables remains the best way of bringing down power costs and household bills.

Labor pledged its policies would result in power prices falling by 2025 during this year's federal election campaign.

Image credits: Getty Images

Tags:
money & banking, electricity, power, bills, cost of living