Despite initial decrease after carbon tax repeal, Australians electricity costs spike again
Following last week's article on how Australians pay much higher network electricity costs than internationals, thought this was an interesting piece discussing how households in Victoria, Queensland, and WA are experiencing a significant power bill increase --despite having seen an initial decrease following the repeal of the carbon tax. While the article is heatedly political, it is still a worthwhile read because it underscores the relentlessly high price of network electricity here in Australia. Here is an excerpt:
In the end, according to the Australian Bureau of Statistics consumer price index data, people actually saw on average just a 5.1% reduction in power prices after abolition. Although the ACCC said that once you excluded other factors driving up power prices, the SAVING was closer to 7.3%.
The carbon price did have a very significant impact on the cost structure of coal-fired generators and therefore the wholesale price of electricity. But once everyone else in the supply chain added assorted charges on top of this (particularly the cost of poles and wires), by the time it got to Joe Householder the effect was far more modest.