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Easy Tiger

Consumers hit with 6.6% power bill increase

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Consumers hit with 6.6% power bill increase because we didn't use enough (power) over summer

QUEENSLAND households will be penalised with higher power prices for keeping their air-conditioners off over summer.

The state's electricity price regulator, the Queensland Competition Authority, has announced a 6.6 per cent increase in power prices from July 1.

The increase will add $120 to the average bill of households already under pressure from an array of cost increases.

Power prices have now soared by more than 60 per cent since the State Government promised deregulation of the industry in the southeast would put downward pressure on prices.

Almost 80 per cent of the increase was blamed on growing network costs, the price passed on to consumers for building and maintaining the power system to cope with increasing demand.

However, lower than expected power consumption over the disaster-affected summer meant distributors did not recoup their investment costs.

"As costs increased while the load decreased, the (electricity price) was pushed higher than it would have been had the load remained relatively constant."Those costs have now been attached to electricity prices for 2011-12, meaning households will pay extra for not using enough power this financial year. "Between 2009 and 2010 the load decreased by 2.13 per cent, reflecting the more benign temperatures during the latter months of 2010," the QCA said in a statement.

Energy Minister Stephen Robertson described the outcome as "perverse" but said consumers would benefit in years when they used more power than predicted.

"As perverse as it sounds there has been a slight upward adjustment to take into account the mild summer," he said.

"But next year we could have a very hot summer and the reverse would apply under those circumstances."

He said the increase "could have been far worse".

"For an average electricity user, an average family in Queensland, it represents a further increase of around about $29.40 to the average quarterly bill," he said.

The QCA said the electricity price increase for 2011-12 would have been 8.31 per cent if the damage from floods and cyclone experienced by distributors was passed on to consumers.

However, the Government last week announced it would prevent Ergon and Energex from recouping the costs of rebuilding its network.

The authority also found the Federal Government's Renewable Energy Target, which will require that 20 per cent of all power be produced from renewable sources by 2020, also contributed to the price increases.

Queensland Council of Social Service president Karyn Walsh said the increase would push more low-income households further into poverty and targeted government assistance was needed.

Seriously F***ked up. If I had a place of my own I'd so be all over stand alone solar power, well maybe I'd be inclined to chuck so many panels on my roof that the electricity company would be paying me enough to pursue my hippy tendancies LOL

Edited by Easy Tiger

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Everyone is encouraged to use less energy and as a reward they are charged more. :blink: Not a good message.

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Everyone is encouraged to use less energy and as a reward they are charged more. :blink: Not a good message.

Yes, and encouraged to go to solar, which also reduces usage.

To make solar worthwhile (see endless threads on Whirlpool for mind-numbing detail) you need to install a decent size system, at least in QLD.

This costs a chunk of cash, so mostly upper-middle and above income earners are going to go for it. The feral government (i.e. taxpayer!) pays out a s***load in rebates for the installation and the QLD govt (i.e. taxpayer!) pays out a s***load to pay for the feed in tariff of 44c per Kw/h that someone gets for exporting to the grid.

So you have

--Expensive electricity because the government privatised an essential service.

--Taxpayers subsidising the installation and running costs of the well-off to install solar power so expensive electricity doesn't affect them.

--Dodgy solar installations ... to go along with dodgy pink batts and dodgy school halls

--State governments slashing feed-in tariffs whenever they feel like it e.g. NSW, WA and QLD (for > 5Kw systems) have recently done this. WTF is legislation for if it can be so easily changed and how can you budget for your system when govt shifts the goalposts?

--Charity organisations are saying that more poor people are going to be forced into poverty and require govt assistance (so another tax or money taken away from another service or people forced into poverty).

All in all, a f*** up that only government could engineer.

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Yes, and encouraged to go to solar, which also reduces usage.

To make solar worthwhile (see endless threads on Whirlpool for mind-numbing detail) you need to install a decent size system, at least in QLD.

This costs a chunk of cash, so mostly upper-middle and above income earners are going to go for it. The feral government (i.e. taxpayer!) pays out a s***load in rebates for the installation and the QLD govt (i.e. taxpayer!) pays out a s***load to pay for the feed in tariff of 44c per Kw/h that someone gets for exporting to the grid.

So you have

--Expensive electricity because the government privatised an essential service.

--Taxpayers subsidising the installation and running costs of the well-off to install solar power so expensive electricity doesn't affect them.

--Dodgy solar installations ... to go along with dodgy pink batts and dodgy school halls

--State governments slashing feed-in tariffs whenever they feel like it e.g. NSW, WA and QLD (for > 5Kw systems) have recently done this. WTF is legislation for if it can be so easily changed and how can you budget for your system when govt shifts the goalposts?

--Charity organisations are saying that more poor people are going to be forced into poverty and require govt assistance (so another tax or money taken away from another service or people forced into poverty).

All in all, a f*** up that only government could engineer.

Tell me about it. ACT government just slashed feed in tariffs (today) from 45c/Kwh to 15c overnight. Local installers were advised two months ago that the scheme would run for another 18 months. I don't know how you can even do business in such a regime. The local minister claims that the benefit has been spread over the whole of Canberra and not just the wealthy areas but I have to question who has a lazy $15000 for solar?

Edit: TBH solar subsidies aren't the most efficient way to achieve carbon cuts but it's the chop and change in policy that screws people over. The sort of half arsed policy that costs peoples livelyhoods.

Edited by staringclown

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