28 March 2017

Electricity prices set to rise by 10.9pc from July 1

| Charlotte
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ACT Climate Change and Energy Minister Shane Rattenbury (right) with the ACT's first energy consumer advocate, Eileen Newmarch. Photo: Charlotte Harper

Electricity prices are set to rise by 10.9 per cent next financial year following a draft determination from the Independent Competition and Regulatory Commission.

ACT Energy Minister Shane Rattenbury said has attributed the majority of the proposed price jump to ongoing uncertainty around the Federal government’s energy policy.

“Investment in new energy projects has stalled, as industry awaits a clear plan for the future of energy in Australia, particularly on setting a price on carbon emissions,” Mr Rattenbury said.

“The closure of the Hazlewood Power Station in Victoria, which has commenced shutting down operations this week, and Northern Power Station in South Australia, which closed last year, mean that we are more reliant on expensive gas generators which are being hit by higher fuel costs.”

The Minister said Territory residents would continue to have some of the lowest electricity prices in the country despite the expected price rise.

“The bulk of today’s proposed increase is outside the control of the ACT and similar price rises will be felt by most other Australian states,” Mr Rattenbury said.

“Canberrans will be paying an average of $800 less per year compared to our Queanbeyan neighbours.”

The ICRC draft determination did not include any increase in costs associated with the ACT’s renewable energy scheme as these costs were under review as part of the national framework for network price regulation.

Mr Rattenbury said the ACT Government would look closely at the draft determination with a view to keeping energy retailer claims in check.

“The ACT Government has just this year partnered with Energy Consumers Australia to appoint a new Energy Consumers advocate to represent ACT consumer interests in these regulatory processes,” he said.

He noted that the Energy Efficiency Improvement Scheme helped households and businesses to reduce their energy consumption.

The public can make submissions to the commission on their draft determination between now and April 28 (see www.icrc.act.gov.au or contact the commission on 6205 0799 or via icrc@act.gov.au).

On Wednesday, 3 May 2017, the commission will hold a public hearing on the Draft Report – Standing Offer Prices for the Supply of Electricity to Small Customers from 1 July 2017 at the Waldorf on London, 2 Akuna Street, Canberra City from 3pm to 5pm. Anyone wishing to appear before the Commission at the hearing must notify the Commission before the event so that a suitable time can be allocated.

Will you be able to absorb the increase or is it time to look for ways to use less energy to keep costs down? We’d love to read your power-saving tips.

Pictured above are ACT Climate Change and Energy Minister Shane Rattenbury (right) with the ACT’s first energy consumer advocate, Eileen Newmarch, at the announcement of her appointment in January. Photo: Charlotte Harper

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devils_advocate4:07 pm 03 Jul 17

LocalUser said :

It’s sad how the government limits Public Service pay rises to a maximum of 2% per year (after a 4 year gap with no pay rises at all) but allows utility costs to skyrocket around us….I’m going backwards every day.

There was no such 4 year gap. Promotions were freely available during this time, people were free to get pay rises as they liked, the pay freeze was a myth.

wildturkeycanoe8:12 am 02 Jul 17

dungfungus said :

As I understand it, the very new 5kW “cap” is on the amount of solar power the grid will accept and pay for, not the installation. One can still install more than 5kW and indeed, if storage batteries are to be coupled more than 5kW of generating capability will be required.
I don’t think it has anything to do with limiting to single phase.

I specifically asked that question and they said no, it doesn’t matter if you aren’t exporting it, more than 5kW of inverter isn’t allowed regardless. Sounds like they don’t want bigger solar systems simply so that I am reliant on the grid and continue to pay for my consumption. With that attitude, going off grid is very tempting and they can stick their bills where the sun doesn’t shine. Like I said, an energy provider selling gear to reduce your reliance on their services is a conflict of interest. How they are getting away with it beats me. Then again, Actew and the ACT government are in bed through the whole “Green energy 2020” or whatever it is thing, so I shouldn’t be surprised. Get everyone to sell their solar to them and buy it back at four times the cost, what easier way to make money is there?

wildturkeycanoe said :

I was told today that there is apparently a cap on new solar installations on single phase of 5kW. That isn’t nearly enough to make a dent in our bill and I can not find anything on the net about this supposed standards change that happened in March. Can anyone confirm or deny this, so I can rethink my plans for solar and contemplate going totally off the grid instead? They seem hell bent on making us slaves to the grid.

As I understand it, the very new 5kW “cap” is on the amount of solar power the grid will accept and pay for, not the installation. One can still install more than 5kW and indeed, if storage batteries are to be coupled more than 5kW of generating capability will be required.
I don’t think it has anything to do with limiting to single phase.

wildturkeycanoe8:30 pm 30 Jun 17

I was told today that there is apparently a cap on new solar installations on single phase of 5kW. That isn’t nearly enough to make a dent in our bill and I can not find anything on the net about this supposed standards change that happened in March. Can anyone confirm or deny this, so I can rethink my plans for solar and contemplate going totally off the grid instead? They seem hell bent on making us slaves to the grid.

chewy14 said :

dungfungus said :

I am a little confused as ABC News reported on 8th June 2017 that retail electricity prices are going to rise by 19% for Canberrans on July 1 and

Then on tonight’s Seven TV News (Sydney) it was advised by a NSW Minister that AGL were going to discount electricity (I am assuming this means only the increase) by 25% for “seniors card holders” to offset the price rise for electricity and a smaller discount for gas.

I realise that AGL are only half our supplier in the ACT but does anyone know anymore?

Also, I have just checked the new electricity supply charges to apply from Sunday from ActewAGL’s website and it appears that both Supply Charges and Usage have only risen 10% over current charges, so is there another price rise around the corner?

The March article was the draft price from the ICRC, the June one is the final.
The difference is because of the sustained higher price in wholesale electricity that has caused the final price to be higher.

There is nothing in the local media today about the 25% seniors discount that is being given in NSW by AGL being passed on in the ACT.
I would have thought at least one RA contributing journalist would have followed this up by now.

wildturkeycanoe9:56 am 30 Jun 17

So our Homesaver rate goes from $0.1661/kWh to $0.1978/kWh which is 19.08% whilst the daily supply fee goes up from $0.947 to $1.092 per day, equalling 15.31%.
Correct me if I am wrong, but isn’t this substantially more than 10.9%??? Who is telling lies, the Independent Competition and Regulatory Commission, Shane Rattenbury, ActewAGL or all three of them?
Our annual bill is set to rise by $520, something we can not adjust our budget to suit. So, we are going to be in a perpetual payment plan to try and catch up with these increases, or either freeze to death [thanks to not being allowed to have wood heating, good on ya Greenies and whingers], or not having showers because hot water is too expensive to heat up.
I agree that comparing our costs with Queanbeyan are totally pointless as they obviously don’t pay as much for rent/mortgage, rates and probably a good number of other things, thanks to our greedy, self serving, arrogant, couldn’t care less about the budget politicians. Moving interstate keeps looking like a better option every time this government puts something out into the media about how great a job they are doing. Spend, spend, spend..but very little return to everyone who isn’t living in the NCA precinct. I am so fed up with with it and I bet a lot of other Canberran’s are too. It’s legalised corruption in my opinion, when they have no accountability to anyone.

dungfungus said :

I am a little confused as ABC News reported on 8th June 2017 that retail electricity prices are going to rise by 19% for Canberrans on July 1 and

Then on tonight’s Seven TV News (Sydney) it was advised by a NSW Minister that AGL were going to discount electricity (I am assuming this means only the increase) by 25% for “seniors card holders” to offset the price rise for electricity and a smaller discount for gas.

I realise that AGL are only half our supplier in the ACT but does anyone know anymore?

Also, I have just checked the new electricity supply charges to apply from Sunday from ActewAGL’s website and it appears that both Supply Charges and Usage have only risen 10% over current charges, so is there another price rise around the corner?

The March article was the draft price from the ICRC, the June one is the final.
The difference is because of the sustained higher price in wholesale electricity that has caused the final price to be higher.

JC said :

chewy14 said :

funbutalsoserious said :

Hi Shane, whilst we are comparing the cost of things to our Queanbeyan neighbours, why don’t we look at the cost of rates? I bet we pay above $800 than them.

Yeah, comparing our electricity prices with those in NSW is extremely disingenuous as the ACT simply doesn’t have the long distance electricity distribution issues that the states do that increase their prices.

The comparison is meaningless, apples Vs oranges although obvious why they would try to use it.

Wrong very wrong.

The ACT gets its power from the same source as NSW which is the National Electrcity Market using the same long distance lines as NSW does. In fact the ACT is considered part of NSW for the purpose of the national energy market.

And that is seperate although related to retail price which is what this article decision is about. Locally the regulator has some control over how much retailers can charge obviously factoring in local distribution charges etc. But again no different to NSW in the way it operates. Just different regulators.

The ACT has nowhere near the size of NSW which is the distribution issues I was referring to, because we don’t have to create, operate and maintain networks to far flung regional areas like NSW does.

This is the main reason why our electricity bills are relatively lower, city dwellers in the states effectively subsidise their regional brethren.

It’s sad how the government limits Public Service pay rises to a maximum of 2% per year (after a 4 year gap with no pay rises at all) but allows utility costs to skyrocket around us….I’m going backwards every day.

look at them smiling . caring about over seas buyers first rather than their own country .

“The public can make submissions to the commission”
really means – The public can bend over and can eat cake .

I am a little confused as ABC News reported on 8th June 2017 that retail electricity prices are going to rise by 19% for Canberrans on July 1 and

Then on tonight’s Seven TV News (Sydney) it was advised by a NSW Minister that AGL were going to discount electricity (I am assuming this means only the increase) by 25% for “seniors card holders” to offset the price rise for electricity and a smaller discount for gas.

I realise that AGL are only half our supplier in the ACT but does anyone know anymore?

Also, I have just checked the new electricity supply charges to apply from Sunday from ActewAGL’s website and it appears that both Supply Charges and Usage have only risen 10% over current charges, so is there another price rise around the corner?

chewy14 said :

funbutalsoserious said :

Hi Shane, whilst we are comparing the cost of things to our Queanbeyan neighbours, why don’t we look at the cost of rates? I bet we pay above $800 than them.

Yeah, comparing our electricity prices with those in NSW is extremely disingenuous as the ACT simply doesn’t have the long distance electricity distribution issues that the states do that increase their prices.

The comparison is meaningless, apples Vs oranges although obvious why they would try to use it.

Wrong very wrong.

The ACT gets its power from the same source as NSW which is the National Electrcity Market using the same long distance lines as NSW does. In fact the ACT is considered part of NSW for the purpose of the national energy market.

And that is seperate although related to retail price which is what this article decision is about. Locally the regulator has some control over how much retailers can charge obviously factoring in local distribution charges etc. But again no different to NSW in the way it operates. Just different regulators.

funbutalsoserious said :

Hi Shane, whilst we are comparing the cost of things to our Queanbeyan neighbours, why don’t we look at the cost of rates? I bet we pay above $800 than them.

Yeah, comparing our electricity prices with those in NSW is extremely disingenuous as the ACT simply doesn’t have the long distance electricity distribution issues that the states do that increase their prices.

The comparison is meaningless, apples Vs oranges although obvious why they would try to use it.

wildturkeycanoe said :

dungfungus said :

“The closure of the Hazlewood Power Station in Victoria, which has commenced shutting down operations this week, and Northern Power Station in South Australia, which closed last year, mean that we are more reliant on expensive gas generators which are being hit by higher fuel costs.”

Someone, please explain this nonsense.

But the ACT will be 100% renewable by 2020, so we should not be slugged with expensive gas fired power because our energy is free from the wind and sun. There is no way politicians can justify us paying full price for gas powered electricity while claiming we don’t use it.

Umm, 2020 is an election year so we should expect an announcement from the same minister then “confirming that as we are now using 100% renewables our electricity will now cost what it was in 2016 as the sun and wind is free.”

Maybe he can also turn off that token, filthy land-fill methane gas powered generator at the Mugga Lane land-fill at the same time.

wildturkeycanoe2:56 pm 28 Mar 17

dungfungus said :

“The closure of the Hazlewood Power Station in Victoria, which has commenced shutting down operations this week, and Northern Power Station in South Australia, which closed last year, mean that we are more reliant on expensive gas generators which are being hit by higher fuel costs.”

Someone, please explain this nonsense.

But the ACT will be 100% renewable by 2020, so we should not be slugged with expensive gas fired power because our energy is free from the wind and sun. There is no way politicians can justify us paying full price for gas powered electricity while claiming we don’t use it.

funbutalsoserious2:44 pm 28 Mar 17

Hi Shane, whilst we are comparing the cost of things to our Queanbeyan neighbours, why don’t we look at the cost of rates? I bet we pay above $800 than them.

dungfungus said :

“The closure of the Hazlewood Power Station in Victoria, which has commenced shutting down operations this week, and Northern Power Station in South Australia, which closed last year, mean that we are more reliant on expensive gas generators which are being hit by higher fuel costs.”

Someone, please explain this nonsense.

There is less baseload power available and more reliance on intermittent generation capacity (wind and solar) and gas power to fill the void.

Investment in larger scale generation capacity is down because there’s no coherent energy policy being put forward by the federal government and the states are off in their own little bubbles doing whatever they want.

Due to the issues around supply and cost of gas (despite having enormous reserves available) and the issues with the intermittent generators and network management, prices are going up, up, up.

dungfungus said :

“The closure of the Hazlewood Power Station in Victoria, which has commenced shutting down operations this week, and Northern Power Station in South Australia, which closed last year, mean that we are more reliant on expensive gas generators which are being hit by higher fuel costs.”

Someone, please explain this nonsense.

The Australian Energy Market Commission wrote a report about it: http://www.aemc.gov.au/getattachment/5b2c12b1-369f-4862-b9ff-4e11ffba5f74/Victoria-fact-pack-and-media-release.aspx

And it’s pretty simple mathematics. If Hazelwood and Northern Power Station (each very cheap, but highly polluting power stations) are no longer generating electricity, you have to get it from somewhere.

At the moment, that ‘somewhere’ is gas fired generators, which is significantly more expensive, because we are now completing against the export market for our own gas supplies.

“The closure of the Hazlewood Power Station in Victoria, which has commenced shutting down operations this week, and Northern Power Station in South Australia, which closed last year, mean that we are more reliant on expensive gas generators which are being hit by higher fuel costs.”

Someone, please explain this nonsense.

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