Environmental IQ

NSW Electricity prices to increase by up to 42% over 3 years/


April 28, 2010 – 12:14PM

It’s official – NSW residents will not be hit with the expected hike in electricity prices, thanks to the federal government’s decision to delay its emissions trading scheme.

Prices in the state were set to rise by up to 64 per cent in total by 2013, reflecting the impact of the federal government’s carbon pollution reduction scheme (CPRS).

But Prime Minister Kevin Rudd on Tuesday said the government would wait until the end of 2012 before proceeding with the CPRS.

The NSW Independent Pricing and Regulatory Tribunal (IPART) confirmed on Wednesday that electricity prices will now rise by up to 42 per cent over the next three years.

A typical Integral Energy residential customer will now see their bill increase by seven per cent per annum from July 1, rising by 20 per cent by 2013.

This would add a further $85 per annum to their bill from July 1.

The average EnergyAustralia customer’s bill will rise by 10 per cent or $126 per annum from July 1, lifting to 36 per cent in 2013.

Country Energy customers will see their bills rise the highest, with the average bill up by 13 per cent or $183 per annum from July 1, rising to 42 per cent in 2013.

If the CPRS had been introduced this year, Integral Energy bills were expected to rise by 46 per cent by 2013, Energy Australia’s by 60 per cent and Country Energy’s by 64 per cent.

IPART said the current price increases would provide for electricity providers to increase investment in infrastructure to improve their network’s security and reliability of supply.

© 2010 AAP