Gippsland’s electricity users will see the largest increase in their bills from July, after the Essential Services Commission approved a 9% increase in the default prices for AusNet services.
Key points:
- Energy prices in Gippsland will rise 9 percent
- Network operator AusNet Services says Gippsland prices are higher due to last year’s storm recovery costs
- Other Victorian regional networks face increases of between 3% and 5%, while Melbourne prices will rise by 1%
Under its jurisdiction, the Australian Energy Regulator and the ESC set benchmark electricity prices that act as support for consumers who do not want or cannot bargain with their suppliers.
Bills for other networks around Victoria Regional will increase by between 3% and 5% due to rising wholesale electricity costs, but a spokesman for AusNet said other factors were contributing to the Gippsland prices rise.
“AusNet’s network costs have also risen due to higher-than-expected inflation, recovery costs associated with natural storms, and reward payments to AusNet,” the spokesman said.
Residents and businesses in Gippsland were forced to run out of electricity or depend on generators for weeks last year after heavy storms fell trees and power lines.
AusNet spokesman added that the costs of the storms were evident last year.
“Prices also remained artificially low during 2021-22, as we returned excess revenue recovered due to blockages of COVID-19.”
Price hikes come after AusNet paid historic compensation for power outages during severe storms last year.
Companies feel the pressure
The owner of a small business in Sale, Raj Singh, said he had already been forced to pass on the rising costs to customers.
“Because we’re a small grocery store and we face real people every day, it’s very hard to tell people that things are getting more expensive,” he said.
Its Asian grocery store is dependent on deliveries from Melbourne, and the rise in petrol prices is already shrinking its margins.
“Gasoline prices are already so high, and everything is making it more expensive,” he said.
Energy price increases take effect from 1 July.
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Posted 11 hours ago 11 hours ago Thu, May 26, 2022 at 4:07 AM, updated 11 hours, 11 hours ago, Thu, May 26, 2022 at 4:10 AM