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How to sidestep electricity price rises
There has been lots in the media lately about electricity prices going up. This is unsurprising, when organisations such as the Australian Energy Market Operator predict the wholesale price of electricity may more than double next year, and increase two and a half times over the next 20 years.
While wholesale electricity prices account for roughly half of the consumer’s dollars, electricity retailers, too, are preparing to implement substantial price rises:
In Queensland:
- Energex customers can expect to see a 21% price rise in the 2010/11 year, and an average of 6% increase for each of the following four years.
- Ergon Energy customers can expect to see a 9% price rise during 2010/11 and around 2% each year for the following four years.
Source: http://www.aer.gov.au/content/index.phtml/itemId/656050
In New South Wales:
- Energy Australia customers are predicted to see a 58% price rise between now and 2012/13.
- Country Energy customers will face a 22% increase by 2012/13.
- Integral Energy customers can expect a 44% price rise by 2012/13.
(These figures are those reported in the Australian Financial Review 16 December 2009)
How to sidestep the impact of these price rises? The good news in NSW is that the State Government has introduced a 60c per kWh GROSS feed-in tariff, a move designed to encourage householders to invest in solar power. Anyone with a solar power system up to 10kW will be paid 60 cents for every kilowatt hour it produces. The government predicts the average family will be paid around $1500 a year.
Queensland has a different arrangement for buying solar from domestic producers – a NET feed in tariff. Anyone producing more electricity than what they are using (at any moment in time) gets a credit of 44 cents per kWh. This payment is handled by the energy retailer (some pay more than 44c) and offset against the electricity bill. While the net feed in tariff is not as lucrative for the householder as the gross scheme in NSW, those Queenslanders with large systems or those who are frugal with energy still find they no longer pay electricity bills.
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