CHRISTMAS is supposed to be a happy time. We, eat, spend and are merry.
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But yesterday’s announcement by the Australian Energy Regulator that the region’s power distributor Powercor has been given the green light to increase network tariffs leaves a bad taste in the mouth.
The estimated impact on residential customers is $132 for an average annual residential bill of $2100.
It revealed the increases in network charges for next year were higher than those approved last year, saying they reflected increases in costs for the use of the transmission network.
But the real kick was where it said the increase in costs was mainly caused by distributors previously under-recovering their costs.
So why do 2015 customers have to pay for something that should have been paid for previously?
While distributors will charge more, electricity retailers are also planning on increases between 3.8 per cent and 9.7 per cent, making the hikes a double whammy.
At a time of rising unemployment, and minimal wage growth for those in work, the price of power is going to hurt the vulnerable.
South-west support agencies are already reporting a rise in the number of people unable to pay their utility bills and that is before the increases have kicked in.
New figures released yesterday already revealed an alarming increase in the number of people being disconnected by energy suppliers because they can’t pay their bills.
The future isn’t looking too rosy. These are worrying times, especially for those who struggle to live week to week.
What’s the solution? It’s not like we can live without electricity.
These hikes mean we have to become more vigilant when it comes to reviewing contracts and deals. The days of sticking with one company are gone, we have to shop around and ensure we drive a hard deal.
Every dollar counts.