Origin Energy predict energy prices to triple
Over the next 10 years Australian energy prices will triple is the prediction offered by Grant King, CEO of Origin Energy.
Mr King cites the governments' indecision around its carbon trading policy as a key factor in forcing these prices up. Without a clear mandate, investment is only occurring in the safest of generation projects.
The prediction identifies the build of new renewable generation, increases in transmission and distribution costs, and the re-pricing of Australian fuel prices to international levels.
Essentially, the higher cost involved in producing electricity for renewable sources has not been factored in to suppliers pricing models, the distribution system is already stressed, and there's a need to upgrade the countries facilities, and finally the fact that internationally there is a growing demand for coal, which will mean the overall price of coal will be forced up.
Make It Cheaper says: "These predictions will come as a real concern for businesses and consumers already struggling to manage the increasing costs of their energy bills.
What's critical is that all consumers must take ownership of their bills, learn how to reduce their energy usage and understand the best ways to shop around for cheaper deals from suppliers who are looking to win them as new customers."