Traditional Electricity


The Minister for Energy, Bryan Green, said the Liberal Party’s planned power prices bill was a populist political stunt hiding the fact they still have no long term vision for the future of Tasmania’s electricity industry.

“Make no mistake, the State Government is keenly aware of the impact of rising electricity prices and we are determined to do what we can to ease the financial pain.”

“We have committed to making a submission to the independent Regulator about smoothing any increases and we are establishing an expert panel to conduct a major independent review of the State’s energy industry over the coming 12 months.”

“And the Social Inclusion Unit has begun work on a Cost of Living strategy which will examine all the key factors, including utility prices, that put a stress on household budgets.”

“We are working hard towards long term solutions for those Tasmanians whoa re doing it tougher; we aren’t using their struggles to score political points like the Liberal Party.”

“Mr Hodgman and Mr Gutwein can’t even decide how they should address this problem – one day they want to give relief to residential customers, the next it’s small business and then it’s farmers.”

“And they keep trying to spend money we don’t have. Tihs so-called ‘windfall’ gain of $46 million represents Commonwealth funding that is already committed to Commonwealth projects. It can’t be spent twice.”

“This demonstrates the Liberals fiscal irresponsibility and a complete lack of understanding of the State’s finances.”

“This Government will always do it’s best to support those Tasmanians who need a hand, that’s why we have some of the most generous energy price concessions in the country and we are delivering a further one-off $100 concession.”

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Australia’s soaring energy costs, there’s barely a family in the country that hasn’t seen their bills skyrocket by hundreds of dollar recently.

But now the definitive guide, why is it happening and how it’s possible to wind back some of these costs and take control.

“I was shocked, absolutely shocked, I, it took me a while to think, what’s going on here?” said Melbourne mum Kelly Phillips.

Kelly is using the same television, the same computer and the same fridge as last year but this years power bill is alarmingly different.

Her bill for last year was just under $600, a year later it has gone up to $915, an increase of approximately 50%. To be fair, it was a very cold winter and Kelly does have a young son, even so the actual rate has risen by 18%.

“It’ ridiculous, peak rates is when I’m using it the most, 18% jump, it’s not justified, it’s ridiculous,” Kelly said.

“I’m quite frustrated, pretty angry, but what can you do?” said Robert Vargas of Sydney. His power bill went from $270 to $1,300 in just 9 months, that’s a 5 fold increase.

“I feel quite frustrated that it has gone up as much as it had and I really don’t know what to do about it to be quite honest. I come home now and instead of enjoying myself I just turn things off as I go around the house to try and not get a bill that’s the same.”

So, why are power prices rising so steeply? Deregulation of the industry was supposed to mean cheaper power, but other factors are stopping that.

First, an increasing population, bigger households with more appliances, plus heat-waves and cold-snaps all result in a surge in electricity demand.

Add to that the fact no new power stations are being built, there’s a lack of supply. Investment in infrastructure to improve network reliability of supply is costly and throw in the Federal Government’s mandatory ‘Renewable Energy Target’ scheme, aimed at reducing greenhouse gas emissions at a cost and you have expensive power.

“The cost of electricity will increase consistently over the next decade,” said Ben Freund of GoSwitch.com.au.

Australians have been zapped with about a 10% increase in their power bills in the last few years. The bad news is they’re set to rise by a staggering 100% in the next three years. The good news is, there is something you can do about it.

“Almost everyone is paying too much for their power bills because very few consumers are on the cheapest plan available,” said Ben Freund.

“There are multiple providers around and that’s the good thing about the deregulation that we’ve been through. If you’re not happy with the provider you’ve got today, you can look at going to another provider. So there is an answer to it, you can do something about this,” said Steven Mickenbecker from Canstar Blue.

Source: A Current Affair.