"nsw Power Prise Rise"

Power prices are set to rise in NSW, putting a strain on many who are already struggling with their current bills.

The Independent Pricing and Regulatory Tribunal (IPART) recently released a report outlining the planned price hikes for NSW, to take effect in July 2011. On 1 July, 2011 the average cost of power across NSW will increase by 18%.

The biggest cause for the increase are network costs, contributing 10% of the overall increase in prices. Much of the power grid needs updating and replacing, the costs of improving the transmission and distribution network is now being passed onto power customers.

While network upgrades make up most of the price increases there is an attempt to shift the blame to the green energy industry.

“Two thirds of the projected price increases are due to investment in poles and wires, network upgrades continue to be the main driver of electricity price increases in Australia,” said Clean Energy Council Chief Executive, Matthew Warren.

While green energy schemes contribute to the rise in energy prices, it is a result of poor management by the State Government says Warren.

“The over-ambitious gross feed-in tariff in NSW delivered another boom-bust for an emerging solar PV industry that is starting to make a real difference to energy use and carbon emissions in Australia."

“That type of short term policy doesn’t help the renewable industry and it now has to be paid for by NSW households. But this is not the fault of the Commonwealth Renewable Energy Target and IPART knows this," said Warren.

The increase in network costs is also to cope with the increase load and demand on the states energy use, as well as meeting more rigorous licensing conditions. The energy retailers in NSW have faced an increase in network costs that range from 16% - 19%.

The power price increase will be felt differently depending on your energy retailer, the average cost will differ slightly across the three retailers. For Energy Australia prices will increase 17.9%, Integral Energy will increase their prices by 16.4% and Country Energy will have the highest increases with a hike of 18.1%.

The report averaged that a standard household would face an increase in $230 - $316 a year, a sum that many low income earners will not be able to afford. The Tribunal stated in the report they "are concerned about electricity affordability for low-income, high consumption households and believe that targeted assistance should be directed to these customers."

So what does this mean for you if you live in NSW? You need to take action now on how you will plan for your power price rises. These are the facts, on the 1st July 2011, power prices will rise by 18% and the solar power Government rebate will be cut. So if you want to plan for your energy future with a renewable energy source like solar power, time is running out!

To add more pressure, the report outlined recommendations to the Federal Government which included closing the NSW Solar Bonus Scheme to new participants. While just suggestions at this time, it highlights how you need to act now if you want to make the switch to solar to secure the current benefits.