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”?
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.