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Electricity price hikes a natural occurrence in dry climate

Drought affects electricity prices 16000646 800467629 0 0 10645 300

There are a lot of factors which will impact the price that you pay for electricity in the home or office.

One of them is due to Australia's naturally harsh climate, as prolonged dry spells can drastically affect the ability of hydrostations to run efficiently.

According to a report by the Department of Resources, Energy and Tourism: "Retail electricity prices rose sharply in 2007 and 2008 as drought conditions drove up wholesale electricity prices due to constraints on hydro-electric generation capacity and power station cooling operations."

Periods of drought affect Australia in many ways - from agriculture production to the scarcity of water supplies.

What many do not realise is that energy that is generated via hydro power stations is dependent on regular rainfall - which is never a guarantee in many parts of Australia.

The report also states that the government's carbon price will increase electricity bills by an average of $3.30 a week in 2012-13.

Of the course of a year, this figure will account for roughly ten per cent of the existing cost.

Electricity prices remain a concern for many Australians who may benefit by comparing energy suppliers for a better rate.