Sydney Council Hit with Soaring Electricity Costs
Sydney and New South Wales Councils have been hit with soaring electricity costs. IPART, the New South Wales regulator, has enforced price increase for all electricity users in NSW, and for local councils this has led to an addition $7.5million in electricity costs.
Whilst some councils, like Randwick, have looked to optimise the costs they're outlaying, other like Botany, have been left with significantly higher electricity costs.
On July 1, Sydney saw electricity costs rise by 10% across the board. Customers on large 'commercial' contracts will have seen increases only against their network costs, but as contracts come to an end, all councils will be required to negotiate new contracts with electricity suppliers.
Councils often have a whole heap of red tape, which can prevent them from negotiating competitive electricity contracts.
In these cases it's critical that Sydney councils become far more progressive, starting negotiating with retailers, and potentially engage a credible, independent broker to support their negotiation and recontracting process.
At the end of the day, it's the general public that ends up footing the bill through higher taxes if councils fail to act responsibly, and negotiate the best deal they possibly can.