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Leccy prices up 17.74%. Blame Julia

By johnboy - 8 June 2012 222

wind farm

The Independent Competition and Regulatory Commission has released its final report on electricity prices for 2012-14.

For the final report the Commission undertook further analysis of the impact of the introduction of the price on carbon and this has resulted in a change to the method the Commission used to calculate a prudent retailer’s wholesale electricity costs in the final decision. The Commission is satisfied that the revised methodology is appropriate for determining the energy purchase cost in the period 2012-13. The methodology may need to be reviewed in the future to account for market developments and any other changes in the way retailers and generators are contracting with one another.

The Commission recognises that a 17.74% increase in retail electricity prices is substantially greater than retail electricity price increases approved by the Commission in previous years. The reason for this, as explained in the draft decision, is largely attributable to the introduction of the price on carbon. The price on carbon accounts for 14.2 percentage points of the approved price increase.

In making this determination the Commission also considered the likely impact of the increase in retail electricity prices on ACT households and small businesses. This analysis notes that the impact of the cost increase is proportional to a households’ or businesses’ energy usage. The analysis highlights that actions to improve energy efficiency can assist households and businesses to offset the impact of the price on carbon. The Commission also observes that both the ACT and the Australian governments have instituted compensation measures to assist households to deal with electricity price increases.


UPDATE 08/06/12 12:37: ActewAGL are getting out in front of the story and pointing out their prices are still low low low:

“While the cost of energy is going up, the ACT will still continue to have the lowest electricity prices in the country and considerably lower prices than those across the border,” said ActewAGL General Manager Ayesha Razzaq responding to today’s final electricity pricing decision by the Independent Competition and Regulatory Commission (ICRC).


UPDATE 08/06/12 12:57: Did you think Zed Seselja could miss the chance to shout “COST OF LIVING”?

Of course he couldn’t.

Today’s announcement that Canberrans’ electricity costs will rise by a whopping $273 largely because of Federal and local Labor tokenistic green schemes is a cost of living slug households simply can’t bear, ACT Opposition Leader Zed Seselja said today. Mr Seselja said many families would face much, much larger increases.

“This increase is largely attributable to the carbon tax which Katy Gallagher supports, and the ‘energy efficiency’ scheme her government introduced. On top of ACT Labor’s inequitable solar feed-in tariff scheme, it’s a triple cost hit which could be the final straw for many household budgets,” Mr Seselja said.

Erm, hang on. the final straw for many household budgets.

Is he suggesting mass bankruptcies from this? Suicides?


UPDATE 09/06/12 09:29 Andrew Barr is parroting the ActewAGL line.

[Photo by Public Domain Photos CC BY 2.0]

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222 Responses to
Leccy prices up 17.74%. Blame Julia
funbutalsoserious 6:13 pm 08 Jun 12

Please Julia, it’s time to go, you are the weakest link, Goodbye!

schmeah 4:48 pm 08 Jun 12

Endrey said :

I’m not going to blame Julia if my electricity bills end up being 17% higher, I’m going to blame myself for being too stupid to switch of lights, appliances etc.

+1 .. Blaming Gov policy is just Gen X/Y’s way out of taking responsibility, as per.

Consider your energy consumption first.

pajs 4:18 pm 08 Jun 12

wildturkeycanoe said :

Lovely, our 3 kids single income family will be $200 per year worse off. Thanks a lot Greenies.

Not that the tax-free threshold is changing, or there’s a compensation package, or anything…

wildturkeycanoe 4:10 pm 08 Jun 12

Lovely, our 3 kids single income family will be $200 per year worse off. Thanks a lot Greenies.

steveu 4:09 pm 08 Jun 12

Chop71 said :

Read between the lines…. NSW has to supply a grid all over the state. Large land areas with many regional populations. I’d say the cost of infastructure in the ACT per resident/land area would actually enforce is to have much cheaper electricity than NSW and other states.

Correct.

I think people have been pretty good in conserving our resources (reduction in water usage in the ACT, if I do say so, is something to be proud of).
I think people in general have been taking positive steps in reducing their electricity consumption.I just hope things dont go to an extreme.
I agree that electricty companies are working hand in hand with governments in order to continue to maximise profits.

People would feel a bit better about the increases in prices if there was a reasonable level of accountability on how the extra moeny was being spent – to save our environment from the imminent peril we and our children face…

SnapperJack 3:44 pm 08 Jun 12

Endrey said :

I’m not going to blame Julia if my electricity bills end up being 17% higher, I’m going to blame myself for being too stupid to switch of lights, appliances etc.

Blame yourself the next time you hear about a family poisoning themselves with carbon monoxide fumes after bringing the BBQ inside because they can’t afford electricity. And blame yourself the next time you hear of pensioners dying in house fires after trying to use long abandoned kerosene heaters to stay warm. But I suppose you don’t care about that.

Just keep believing in this utopian fantasy of a “clean energy future” while sipping your latte and to hell with people in the real world who will have to pay more and more and have to wait more than a year before they can get revenge on Labor and The Greens for creating this cruel and selfish injustice.

EvanJames 3:32 pm 08 Jun 12

dtc said :

If you are on a combined $130k with two kids, you get about $600 ‘back’ in assistance from the govt. So that will cover your electricity bill (although you are still about $100 ‘short’ due to the other pricing impacts).

https://www.cleanenergyfuture.gov.au/helping-households/household-assistance-estimator/

I filled that out. No to all the questions, $65k to the income one.
No direct assistance, of course. And they claim that of the $369 extra I’ll pay in power bills, I’ll get $303 back via tax cuts.

Feeling skeptical.

And I suspect that a lot of people currently lulled into complacency at all the government spruiking of assistance to cushion the tax are in for a very nasty surprise.

dtc 3:01 pm 08 Jun 12

If you are on a combined $130k with two kids, you get about $600 ‘back’ in assistance from the govt. So that will cover your electricity bill (although you are still about $100 ‘short’ due to the other pricing impacts).

https://www.cleanenergyfuture.gov.au/helping-households/household-assistance-estimator/

Jim Jones 3:01 pm 08 Jun 12

dungfungus said :

Endrey said :

I’m not going to blame Julia if my electricity bills end up being 17% higher, I’m going to blame myself for being too stupid to switch of lights, appliances etc.

Blame youself also when you trip over something and break your leg because you had turned the light off. If you start to get a mindset like this you may as well go and live in a cave.

JuLIAR broke my leg herp derp

sien 3:01 pm 08 Jun 12

If you want to save money you can stop commenting on the net or it’s a bit hypocritical.

Has anyone calculated how much Australia’s reduction will reduce global temperatures by in 2050?

dungfungus 2:19 pm 08 Jun 12

Endrey said :

I’m not going to blame Julia if my electricity bills end up being 17% higher, I’m going to blame myself for being too stupid to switch of lights, appliances etc.

Blame youself also when you trip over something and break your leg because you had turned the light off. If you start to get a mindset like this you may as well go and live in a cave.

c_c 2:10 pm 08 Jun 12

Endrey said :

I’m not going to blame Julia if my electricity bills end up being 17% higher, I’m going to blame myself for being too stupid to switch of lights, appliances etc.

Biggest energy consumers in the home are water heating, clothes washing and cooking. Home heating is also very high, though seasonal.

State wide, all those extra light bulbs, and phantom power drawers might add up, but for individual consumers, try telling them to turn the biggest and at the same time, most energy users off.

Chop71 1:42 pm 08 Jun 12

Read between the lines…. NSW has to supply a grid all over the state. Large land areas with many regional populations. I’d say the cost of infastructure in the ACT per resident/land area would actually enforce is to have much cheaper electricity than NSW and other states.

So that makes me ask. Why shouldn’t I have cheaper electricity?

I more than likely won’t get a responce, just a bill that was 17% more than last year.
Thanks ActewAGL, Actew’s major shareholder (ACT government), the pricing regulator and Julia

EvanJames 1:02 pm 08 Jun 12

ACTEW are right. NSW has enjoyed some really spectacular electricity price rises over the last 2 years. This was to pay for building new infrastructure, for rising demand and population growth (there’s that weird thing again, I thought population growth brought all manner of good things?).

Many NSW people had the edifying experience of trimming back their power usage when warned that prices were going up, only to view their next power bill, which showed that they’d used much less power than ever before, but their bill was still higher than ever before.

Endrey 12:57 pm 08 Jun 12

I’m not going to blame Julia if my electricity bills end up being 17% higher, I’m going to blame myself for being too stupid to switch of lights, appliances etc.

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