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Electricity prices set to rise by 10.9pc from July 1

By Charlotte Harper - 28 March 2017 8

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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8 Responses to
Electricity prices set to rise by 10.9pc from July 1
1
dungfungus 11:34 am
28 Mar 17
#

“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.

2
kincuri 1:50 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.

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.

3
chewy14 2:20 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.

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.

4
funbutalsoserious 2:44 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.

5
wildturkeycanoe 2:56 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.

6
dungfungus 4:56 pm
28 Mar 17
#

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.

7
chewy14 8:18 pm
28 Mar 17
#

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.

8
JC 11:00 pm
28 Mar 17
#

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.

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