We know power costs are rising in Australia. Cost of gas has been increasingly rapidly too. Here's a link to an ABC article talking about 31% increase in these costs: https://www.abc.net.au/news/2023-03-15/australian-energy-regulator-default-market-offer/102094290. Another link by Financial Review mentioning the same hike: https://www.afr.com/companies/energy/power-bills-to-rise-by-20-per-cent-from-july-1-20230314-p5crzg. Here's a collective extract from these 2 links telling you why costs are rising in the country:
Increase in wholesale energy prices: Wholesale energy prices have been increasing due to a variety of factors, including the closure of coal-fired power plants, reduced gas supply, and increased demand during extreme weather conditions. This increase in wholesale energy prices has been passed on to consumers through higher electricity bills.
Investment in renewable energy: While renewable energy sources such as solar and wind are becoming more cost-effective, the transition to renewable energy still requires significant upfront investment. This investment is being passed on to consumers through higher electricity prices.
Network costs: The costs of maintaining and upgrading the electricity grid, including poles, wires, and transformers, are also contributing to the rise in power costs. These costs are typically passed on to consumers through their electricity bills.
Government policy: Government policy can also impact power costs. For example, the Renewable Energy Target (RET) and other government incentives for renewable energy have contributed to the rise in power costs, as these costs are ultimately passed on to consumers.
Consumer behaviour: Finally, consumer behaviour can also impact power costs. For example, if consumers are using more electricity during peak periods, this can lead to increased demand and higher prices.
By understanding these factors, you can make informed decisions about how to manage your electricity costs, such as by investing in solar energy or using energy-efficient appliances. It's also important to compare energy plans and providers to ensure that you are getting the best deal for your needs.
