Following the shock of doubling gasoline prices earlier this year, many households are about to discover that their energy bills are also rising.
The Australian Energy Regulator (AER) announced last week that the price of default electricity will rise by an average of at least 8.5% in NSW or $ 119 a year, in south-east Queensland by 11, 3% and 7.2% in South Australia. In Victoria, the Essential Services Commission has increased the rate by about 5 percent. Price increases for small businesses will be even higher.
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These increases correspond to the “regulated standard supply”, a tariff that all electricity retailers must offer as a safety net to protect people from unjustifiably high prices. But 90 percent of households that have bought and found cheaper market rates will also have to pay more when their contracts expire. Gas prices are rising at the same rate.
These high energy prices will increase the burden this winter for many families who are already struggling.
Some may be tempted to link these price increases to the growth of renewable energy and the Albanian government’s plan to reduce greenhouse gas emissions by 43% by 2030.
Peter Dutton, who is expected to win the Liberal leadership on Monday, said last week that he was concerned about the ALP’s goal because “we want to make sure people can afford to turn on the lights.” .
However, this reveals a misunderstanding about what is driving the current jump in energy prices and how to fix it.
The AER in announcing the price increase said it was due to “reductions in heat generation resulting from unplanned shutdowns and higher coal and gas prices.”
In other words, prices are rising because old coal-fired power plants are breaking down, causing shortages, and the war in Ukraine has caused global coal and gas prices to plummet.