IPART Recommends NSW Electricity Price Hike
The Independent Pricing and Regulatory Tribunal of NSW (IPART) regulates electricity prices for the majority of New South Wales residential and small business customers.
These are the prices that EnergyAustralia (now owned by TRUenergy), Integral Energy and Country Energy (both owned by Origin Energy) charge customers who have not signed a market contract (competitive contracted deal).
IPART have recommended that electricity prices increase by 18% for NSW customers. Break down by retailers as follows
- EnergyAustralia = 17.9%
- Integral Energy = 16.4%
- Country Energy = 18.1%
This will in real terms mean that customers will now have to spend an additional $18 in every $100 they already spend on their energy bills.
In July 2010, electricity prices increased by an average 10% for all NSW customers - a price increase which was adopted by all retailers, regardless of their incumbent customers base.
The compounded affect will mean that most NSW customers, home owners or business operators, will see the compounded effect of 30% increase in just a single 12 months period.
Reasons attributed to the newly recommened price increase are:
- Increases in network charges = 10%
- Increases in wholesale energy costs = 1%
- Increases in retail costs and margin = 1%
- Increases arising from changes to RET = 6%
RET Increases (Renewable Energy Target) are a result of the changing and splitting of the existing schemes in January 2011. This has meant the LRET (Large Renewable Energy Target) and SRET/SRES (Small Renewable Energy Target), have been split, and the majority of the 6% size listed above is attributed towards the SRET/SRES.