I dont know if everyone else is experiencing the same price hike in their electricity bills as I am, but I read this article in TheAge and simply laughed in defeat…
Not only have our bills gone through the roof in 2012, but they are about to go up again. Why? The Australian Energy Regulator said its for network distribution and transmission costs. What exactly are network distribution and transmission costs?
How can they justify these price hikes…
Shock, horror – electricity price hike
‘ The new charges would mean the average residential ’customer paid an extra $80 on a $1900 bill for the year.
THE average Victorian household will be slugged an extra $80 for electricity next year after the national energy regulator approved price hikes by the state’s power distributors.
The Australian Energy Regulator said customers would pay an average 16 per cent more for network distribution and transmission costs from January 1, 2013.
The increases will affect all five Victorian distributors: CitiPower, Powercor, SP AusNet, Jemena Electricity Networks and United Energy.
AER chairman Andrew Reeves said the new charges would mean the average residential customer paid an extra $80 on a $1900 bill for the year. Electricity bills would increase by about 4 per cent.
Households in SP AusNet’s distribution area will be hit hardest, with tariffs rising by 31 per cent or $180a household. The charge will increase by 18 per cent for Jemena Electricity Network, or $89 a household . The network charges help distributors recoup costs associated with transporting electricity along power lines and make up 30 to 40 per cent of a household’s electricity bills.
The increase is based on the energy regulator’s 2010 determination . It includes new price determinations of an Australian Competition Tribunal review that found the AER underestimated costs incurred by networks when it approved charges in 2010.
Network charges for SP AusNet and Powercor were also affected by expensive bushfire safety projects.
The impact of the increases is calculated on a national average consumption of 6500 kWh.
But a spokesman for SP AusNet questioned the average consumption used by the energy regulator to calculate the increases.
He said the average Victorian household used 50 per cent less.
‘‘ The network tariff increase for SP AusNet customers is more like $103 compared to $180.’’
Shock, horror – electricity price hike
By HENRIETTA COOK | TheAge
The cost increase is probably understandable in the country where it is affected by bushfires, and they are putting the wires under ground, but I don’t live in the country.. I’ve already paid the costs of installation and network costs in my suburb for over 30 years and I don’t see why I should now how to pay again because some people prefer to live in the country. If they like tree hugging, then they have to be able to afford to hug those trees.
I actually believe that if you prefer to live in the country then you need to be able to afford the costs associated with living there. Everything comes at a price. If you want to live in the city (Mark Edmonds, then you have to put up with the noise. If you want to live in the country (and the peace and quiet), then you have to afford the associated costs. I’m not talking farmers either.. some may be affected by trees and bushfires but I’m largely talking about residential properties in the bush.
Underground electricity wires makes a lot of sense if it reduces the threat of bushfires, but why should I have to pay for it while living in the burbs. If they put our wires underground, it would drastically increase my property value along with making the whole suburb look a lot better. Less deaths (car accidents where drivers hit electricity poles). Power outages where poles and wires get broken. Infrastructure maintenace is reduced because the wires are underground. So, will the tree-huggers help pay for our costs?