Released 25/07/2017
A draft determination from the Independent Competition and Regulatory Commission (ICRC) is likely to result in an increase in electricity prices in the ACT by 10.9% from 1 July 2017.
“Despite the proposed increase, the ACT will continue to have some of the lowest electricity prices in the country. The bulk of today’s proposed increase is outside the control of the ACT and similar price rises will be felt by most other Australian states,” said Mr Rattenbury.
“Almost all of today’s proposed electricity price increase can be attributed to the ongoing uncertainty around the Federal Government’s energy policy. Investment in new energy projects has stalled, as industry awaits a clear plan for the future of energy in Australia, particularly on setting a price on carbon emissions.
“The closure of the Hazlewood Power Station in Victoria, which has commenced shutting down operations this week, and Northern Power Station in South Australia, which closed last year, mean that we are more reliant on expensive gas generators which are being hit by higher fuel costs.
“Thankfully, renewable energy generation is immune to fossil fuel price hikes and is keeping downward pressure on wholesale electricity costs. We know that Australia’s energy future is in renewables, and that’s why the ACT Government continues to invest in renewable energy generation and storage.
“In addition, our Energy Efficiency Improvement Scheme is also assisting households and businesses in reducing energy consumption, which flows through to lower electricity bills helping to offset price rises.”
The ICRC notes that their draft determination does not include any increase in costs associated with the ACT’s renewable energy scheme as these costs are under review as part of the national framework for network price regulation.
“Despite the proposed increase, Canberrans will be paying an average of $800 less per year compared to our Queanbeyan neighbours,” said Mr Rattenbury.
“The ACT Government will now look closely at this draft determination with a view to keeping energy retailer claims in check.
“The ACT Government has just this year partnered with Energy Consumers Australia to appoint a new Energy Consumers advocate to represent ACT consumer interests in these regulatory processes,” said Mr Rattenbury.
Public submissions to the ICRC on their draft determination close 28 April 2017. For more information please visit www.icrc.act.gov.au. You can also contact the Commission on 6205 0799 or via icrc@act.gov.au.
- Statement ends -
Shane Rattenbury, MLA | Media Releases
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