Make It Cheaper
Comment:
Kristina Keneally's Price
Promises Won't Cut Household Electricity Bills
1 February, 2011: Commenting on
Kristina Keneally's price promise to householders that she will
slash electricity bills, Make It Cheaper CEO Tim Wolfenden explains
why he believes that her statement will do little to calm voter
anger over high power prices:
- Kristina Keneally's
announcement today is a complex promise that won't deliver short or
long term benefits to NSW households
- It is an appeasement
to voters following the fiasco of the NSW power sell-off
- This will
not reduce current electricity bills: it will just prevent
further price increases
- In a
short-sighted plan, it prevents investment in
electricity infrastructure (cables, poles and wires), compounding
the ongoing problem of power outages across NSW
- Power is a
necessity, not a luxury. Homes and businesses depend
on a reliable power service - restricting improvements in power
lines could drastically impact the NSW economy
- The structure of the
solar scheme was fundamentally flawed primarily due to the
excessive value it placed on a unit of energy - Keneally not
allowing bills to increase because of this flawed scheme seems to
be more an admittance of error rather than putting
the public first
Today's announcement also flagged that the Premier would soon
announce an electricity rebate for households earning less than
$150,000 per year.
"This rebate sounds like political posturing to appease the
growing voter concern about the steep rise in electricity
prices. NSW power is the most expensive in Australia - and
both businesses and householders have had enough," said
Wolfenden
Despite the rising power prices there are ways to keep your
bills down.
"A household bill could be slashed by up to 15% - or $300 per
year - by finding a better deal and switching to a new supplier,"
he said.
About
www.makeitcheaper.com.au
Make It Cheaper is Australia's first dedicated
business price comparison service. Acting as an independent energy
broker Make It Cheaper is helping Australians make
their electricity and gas bills cheaper, by offering a free and
independent comparison and switching service.
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