Electricity bills should rise for households and small businesses following a decision by the Australian energy regulator over floods, the war in Ukraine and the shutdown of coal-fired power plants.
On Thursday, the observer published the final decision regarding the default market offer 2022/23 (DMO), which sets the price of security and a benchmark for customers to make purchases.
The proposed market offerings for household customers will increase from $ 1,512 to $ 2,092 (up 8.5 to 14.1 percent) in New Wales; $ 1,620 (11.3 percent more) in southeastern Queensland; and $ 1,840 (up 7.2 percent) in South Australia.
For business customers, DMO will increase from $ 3,782 to $ 4,901 in New Wales (ages 10.0 to 19.7 percent); $ 3,446 in southeastern Queensland (up 12.8 percent); and $ 4,539 in South Australia (up 5.7 percent).
AER said wholesale costs for retailers rose 41.4% in New Wales, 49.5% in Queensland and 11.8% in South Australia.
This was caused by declining electricity production as a result of unplanned outages and rising coal and gas prices, slowing investment in new stations and increasingly sharp highs and lows in demand.
The regulator said the pressure was heightened by the war in Ukraine, extreme weather in New Wales and Queensland affecting coal supplies and demand for electricity, and further unplanned power outages.
AER Chairman Claire Savage said it was a difficult decision because the regulator sought to counterbalance the additional pressure on consumers and ensure that retailers could resume growth in wholesale and network costs.
“By setting these new prices on DMOs, we understand the significant impact they will have on some consumers who may already be struggling with the pressure on the cost of living,” Ms. Savage said.
“We checked all the factors that affect the calculation of the DMO, and set security prices that reflect current conditions and the main costs of retail.”
She said it makes it even more important for customers to look for the best energy plan for their circumstances.
AER has a special website for comparing Energy Made Easy prices, which, according to Ms. Savage, currently features offerings that allow household customers to save about $ 443 or 24 percent on their bills.
Small businesses can save about $ 1,308 or 29 percent by switching.
New Energy Secretary Chris Bowen has blamed rising costs on “nine years of liberal denial and cost”.
“International factors are at play here … but the lack of energy policy, the lack of investment in new energy, the lack of investment in renewable energy and the lack of transmission over the last nine years mean Australians are paying more. for electricity than they should be, ”he said.
Mr Bowen said the introduction of more renewable energy under the Albanian government would put downward pressure on prices.
Greens leader Adam Bandt has said Labor should reconsider its promise not to speed up the closure of coal-fired power plants.
“It’s a problem because it pushes up electricity prices,” he said.
Australian Social Services Council Energy Director Kelly Cout said the new government should act immediately, updating its recommendations to AER to establish a direct offer on the market at an “effective price” by lowering retail margins, as was done in Victoria.
Other priorities include improving energy concessions and expanding access to energy efficiency measures and rooftop solar panels for low-income homeowners.