Energy prices are on the rise, and that rise will be quicker than we expect, according to new forecasts. New Australian Energy Market Commission reports, recently released by the Ministerial Standing Council on Energy and Resources, estimate that residential electricity prices will rise by about 37 per cent in the coming three years until 2013-2014. Compared to the July prediction of a 30 per cent three-year rise, this new estimate is considerably higher and faster.
According to the reports, NSW, ACT and Queensland will be the states most negatively affected by the carbon tax, where it is thought to make energy prices rise by 42 per cent over the coming three years. Power prices in South Australia are expected to rise by up to 36 per cent, as well as 33 per cent in Victoria, and 30 per cent in Western Australia. Tasmania and the Northern Territory are to be the least effected, but still hit hard, with respective energy price rises of 25 per cent and 16 per cent.
Energy network businesses declare that network prices have had to, and will continue to, rise to ‘ensure safe electricity supplies to consumers, and because the costs of raising funds offshore was increasing’.
Along with this rise in energy prices comes a rise in solar energy usage. The AEMC reports forecast an increase in those purchasing solar energy through the government’s Small-scale Renewable Energy Scheme. ‘Higher retail electricity prices and reductions in the technology costs for solar power will … provide incentives for some consumers to take up the SRES’, the AEMC report states.
