Energy bills will increase $78 on average from mid next year

Household power bills in eastern states will rise by an extra $78 from mid next year.

Energy bills will increase $78 on average from mid next year

A new report released this week by the Australian Energy Market Commission (AEMC) has revealed that, from mid 2017, household power bills in eastern states will rise by an estimated $78.

The Federal Government's renewable energy target and the closure of the Hazlewood coal-fired power station are being blamed for the expected increase to energy bills.

"Across the national electricity market the generation mix is changing – with the large-scale renewable energy target leading to substantial investment in wind generation," said AEMC chairman John Pierce.

"This is contributing to the closure of coal-fired plants and increasing wholesale and retail prices."

While energy consumers from all eastern states will be affected, it’s Tasmanian consumers that will be hardest hit by the Hazlewood closure. Tasmania has long been supplied power via the Basslink undersea cable from the Hazlewood power station. Power prices in Tasmania are expected to rise by an average of $204 per year as a result of the Hazlewood closure.

What do you think about the expected energy price rise? Should the Government be closing down coal-fired power stations and introducing renewable energy sources at more affordable prices?

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    COMMENTS

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    MICK
    15th Dec 2016
    10:41am
    Hang on Drew.....we "have high electricity prices because of the Carbon Tax"? Or so said Abbott and Hunt as the coalition were swept into office. Even after the election these two kept up the same rhetoric.
    So if prices kept rising and we now have another price rise was the Carbon Tax scare a lie?????...........and the bastards were offended at the Mediscare stunt from Labor. Really? What a bunch of unashamed liars and twisted misfits pretending to be politicians working for the country. Nothing is further from the truth.
    btony
    15th Dec 2016
    3:32pm
    When the "Carbon Tax" was repealed my bill went done by $0.17c.
    woop woop.
    Power prices will NEVER go down, no matter how or who does the generating, its a captive market, there's no escape
    btony
    15th Dec 2016
    3:35pm
    oops, should read 'down' not 'done'
    GeorgeM
    16th Dec 2016
    3:56pm
    We just had a large increase in prices in NSW from 1st July 2016 thanks to de-regulation of wholesale pricing by the Liberal Govt here (even Carbon Tax was not that high). The total lack of planning and lack of consideration by our politicians at both National & State level for the public is just astounding - all Liberal, Labor & Green politicians need to be thrown out without getting a 2nd term in every election to stop them getting their grubby hands on their massive pensions.
    particolor
    16th Dec 2016
    5:59pm
    aGREED !! :-(

    15th Dec 2016
    1:03pm
    The rise is a direct result of the closure of Hazelwood. Regardless of why it is closing, I think governments owe taxpayers a constant cheap supply of electricity and a replacement for Hazelwood should have been planned. We need a backup of electricity for those times when alternative power sources are unable to cope but there appears to be a rush to close coal mines and coal fired power stations for no reason other than "saving the planet".

    Australia, and other countries, has enjoyed a relatively cheap electricity for decades and until an alternative source which is both cheap and reliable is produced, I believe that governments should continue to support coal fired power stations. Any government should be elected to care for all of the people who live within the area of government be it local, state or federal. We seem to be living in a world where those who yell the loudest are the ones being listened to.

    If Australia closed down and became a deserted island, the difference to the pollution in the world would be 1.3%. I know that there are people who say that any change must start somewhere but, surely, those who are polluting the most should take the biggest load. We read that China is closing coal fired power stations but the reports forget to mention that as well as closing some, they are building others to replace them. We are also told that the science is settled when there are just as many eminent scientists who disagree about what is causing climate change as those who agree.
    MICK
    15th Dec 2016
    1:32pm
    Our wonderful gas assets have been plundered. Currently we het nix for gas exported to Asia. AT the same time Australians were cut out of cheap access to their own LNG. This is the result of our business owned coalition governments doing deals with the big end of town whilst selling out the country.
    We could have dirt cheap LNG fired energy. Whilst not as good as renewables this could AND SHOULD have been the transition. But what we have is what you get when you allow big business to further its own interests. Betrayal and now high energy costs when it does not need to be so.
    Irrespective if Hazlewood (dirty brown coal) Australia should not have allowed the last 2 governments to destroy the renewables industry. That is the bottom line. Now we are getting what a dumb electorate deserves: pain!
    Anonymous
    15th Dec 2016
    4:15pm
    I agree MICK although I don't see how government is too involved in the pricing. As an exporter, sales are subject to the open market and if we were to start importing we would bring in the same competition that is keeping world prices at an all-time low. The downside to cheap sales is a very low taxable income and government is not getting much income from LNG companies. Maybe a levy or royalty on extraction could be an answer.

    I suppose mentioning nuclear power as a cheap solution is wrong in this forum but it could well be the answer to achieving a baseload power supporting renewables. The people who "yell the loudest" will be totally opposed to nuclear for no other reason than an ideology but Australia is the only continent without a volcano and therefore is relatively stable. Add to this fact that technology has come forward in leaps and bounds since Chernobyl and Fukushima were constructed.
    MICK
    15th Dec 2016
    4:37pm
    We SHOULD have an abundance of cheap power and would have were it not for the Howard government allowing our top rate LNG assets to fall into the hands of foreigners. Now there is none left for us as ALL of the product has already been sold into Asia. The deceit which keeps coming is things like blaming farmers for not letting frackers destroy their land as the Abbott government sought to sell this form of energy as necessary. It never was.
    Nuclear? I'll agree to that when a real solution is found for the most toxic substance on earth (nuclear waste) which has a half life of around 20,000 years. That means it is 'harmless' in maybe 100,000 years. When you have to store the waste in drums which will deteriorate in less than 20 years what is this going to produce....and who pays for putting the growing stockpile into new drums every 20 years? As I have said on many occasions nuclear is the asbestos of energy and should never be on the table. Ever. Renewables, a viable alternative, is on our doorstep and battery storage is progressing each and every year as is increasing efficiency for solar cells. Why would you consider nuclear?
    Tom Tank
    15th Dec 2016
    1:08pm
    A major contributor to the situation with electricity pricing was the privatisation, in Victoria, of the State Electricity Commission by Jeff Kennett.
    Since the various components of the electricity industry are privately owned there is no over-riding control by governments to ensure consumers are properly considered.
    In the case of Hazelwood, which is something of a dinosaur, if it had still be in public ownership an easing out of the electrical system would most likely been the course of action. Instead we are faced with a sudden closure because the owner wants it that way.
    It certainly highlights the need for a National energy policy to give certainty to all producers and users of electricity.
    We need leadership from the Federal Government on this but is it an oxymoron to associate the current Government in Canberra with Leadership?
    The change to renewables is inevitable but the transition is fraught with potential difficulties and must be carefully handled otherwise we will see costly and needless waste.
    MICK
    15th Dec 2016
    1:35pm
    True...........but renewables were cannibalised because they were taking money out of the coal industry. Can't have any of that.
    We need a mix, a transitional mix, and this is what one would expect from a good government. The last 2 coalition governments have been nothing other than nasty gutter dwelling malicious governments screaming blue murder as they repeatedly push their rich man's agenda onto the public. They will not be re-elected even with the media propaganda campaign they get. Nor should any government which vandalises the nation.
    margie
    15th Dec 2016
    1:50pm
    It won't make a scrap of difference what is used for power, the price will continue to rise and once up, it stays up. Just look at solar power, when first offered we had Government buying it back at over 70 cents in the dollar, now you're lucky to get 6 cents in the dollar. Hardly an incentive, and no way you could recoup the original cost of installing solar let alone cover your usage bill. I was fortunate and receive 68 cents in the dollar but am noticing that each year the credits I receive are less and less, how others manage is beyond me. We all put in low energy light bulbs and so the power increases, no matter what you do the mongrels are determined to demand their pound of flesh. Only way to stop them is at the ballot box.
    Old Geezer
    15th Dec 2016
    2:09pm
    I now use a torch instead of turning on lights as torch batteries are very cheap and last a long time. I don't need the whole room lit up just enough to see what I am doing.
    Old Geezer
    15th Dec 2016
    2:07pm
    We have high energy costs for one reason only. There are now too many layers in the supply chain where people make profits. Years ago no one made a profit out of electricity. Today everyone in the supply chain makes a profit resulting an unnecessary five fold increase in prices.

    15th Dec 2016
    4:31pm
    Jeff Kennett promise me that privatisation would lower electricity prices.

    I never believed him.

    Unfortunately, a whole lot of stupid people did.
    particolor
    15th Dec 2016
    6:28pm
    Too Simple !
    I'LL TURN IT OFF :-( :-(
    Kiwozok
    15th Dec 2016
    6:43pm
    Well, surprise, surprise, the punters have been shafted yet again.
    vincent
    16th Dec 2016
    5:02pm
    This the third time I try to post a comment, website is extremely slow to upload. This is a con we are just held to ransom by entrenched interests. Australia has abundant resources, Solar more than you can poke a stick at, Wind power plenty and hot rocks to boot. By the time those galah's in Canberra realize this the rest of the world will have left us behind. Example Shell is planning and will be building a windfarm before the coast of Zeeland servicing 1.000.000 households, do you think that a company like shell would venture into this if it was not profitable. Another 5 are planned as well. The cost of construction has come down so far that it is competitive with conventional power generation. What Happened in SA has nothing to do with alternative energy when your power lines are down it does not matter where your electricity comes from. As far as putting another feeder in to connect to other powergrids that has happened in Europe decades ago. All of western Europe is interconnected. My two cents worth.
    particolor
    16th Dec 2016
    6:04pm
    AUSTRALIA... The Clever Country !! :-)
    More like the Rip Off Country !:-(