Gas-fired electricity generation to raise energy costs

TRUenergy have made clear to the Government that to make the switch from coal-fired power stations, the major generation method in Victoria, to 'greener' gas-fired generation, power prices would have to rise by 20% to make the investment commercially viable.

According to TRUenergy, replacing coal-fired power units at Yallourn with gas-fired units would cost $2 billion to $2.5 billion.

Make It Cheaper says: "There is an inevitable cost to meeting environmental goals.  Once the Government makes clear what these targets will actually be longer term, then small and large businesses consuming electricity will have a far better understanding of the likely costs involved to meet these goals.

Unfortunately, this will means pressure on energy bills, and some significant price hikes.  Businesses need to become more aware of how they are using their energy, and how they can become more efficient in their energy usage."

Aside from greater efficiency, businesses are able to shop around between energy retailers, and switch to those offering cheaper deals - this is a quick and simple way for a business to save money year on year.