Australia’s energy crisis and how it affects your electricity bill
If you’ve been following the stories in the media, you’ll know that there are big changes happening in the energy industry.
It’s been reported that energy prices are set to rise and there will be large-scale ‘blackouts’ caused by impending energy shortages. (See updated news reports on the gas shortages at end of this article)
Australia is reaching a pivotal point in the transition from old outdated fossil fuels to cleaner, greener energy sources, which poses some issues because over many years Governments have lacked clarity, foresight and strong leadership on this issue.
It’s a complex area and the process of transition and lack of policy has undoubtedly contributed to issues we’re now facing regarding wholesale pricing, retail pricing and the future of our power supply.
This debate is highly complex so in this and a series of related articles Enova is sticking to the facts – what you need to know and how you’re likely to be affected.
Prices are rising
There are systemic issues complicating the discussion beyond energy resource management, although the bottom line is that prices are rising, – wholesale electricity prices (the price your electricity retailer pays to access electricity on your behalf) have been increasing for some time now.
So far, retailers have been able to protect consumers by absorbing these increases – wholesale energy prices that have nearly tripled over the past twelve months. But this cannot remain the case for much longer. In July, most retailers are expected to pass these increases through to customer which means electricity prices could rise by as much as 20%.