High electricity bills have been haunting the Aussies for the past five years and the trend continues even today. According to the Grattan Institute, the wholesale electricity prices is the ‘new normal’ and the politicians need to be honest about it.
Unfortunately, many people are still in the dark about why their energy bills have been skyrocketing. Let’s clear the mist and crack down on the five main reasons for high electricity bills in Australia and what you can do it reduce it.
Why Your Electricity Bill is High
1) The two big coal-fired power stations (Northern and Hazelwood) that produced low-cost energy closed down in 2016 and 2017 respectively. This reduced the energy supply and pushed up the cost of electricity by 60 percent.
2) The rise in the cost of gas and other key elements such as black coal further raised the price of electricity, accounting for the 40 percent hike in the wholesale prices.
3) Around the same time, electricity generators used their supremacy to create an artificial shortage of supply, further forcing electricity prices to go up.
4) According to the government, investment in a better and reliable network infrastructure has led to the rise in cost. This is a valid reason because when a network is upgraded with more poles and wires, better service comes at a higher cost.
5) Retailer price gouging is another important reason why your household and business electricity bills are going up. According to a report by Grattan Institute, 43 percent of the revenue collected goes to the profit of electricity companies.
Whether you need an emergency electrician in the middle of the night or an expert for electrical upgrades at your Sydney home, business or office, contact Gordon’s Powers. We are here to repair, install or replace any electrical fault that you have.