Electricity prices rise as consumers reduce usage

New South Wales power supplier Ausgrid has revealed that consumers are using less electricity in the home.

According to Ausgrid energy efficiency expert Paul Myors, household demand has fallen two per cent per year since 2007.

The historic drop comes after energy usage increased every year since the 1950s before finally plateauing in 2006.

Changes in behaviour can be attributed to the drop, with many households looking for ways to reduce the impact of electricity prices on their budget.

Recent price hikes of up to 13 per cent from suppliers have seen customers make a shift towards energy efficient light bulbs and hot water systems.

With more price rises predicted for the near future, director of Make It Cheaper Tim Wolfenden says: "Whilst a reduction of energy usage is a great starting point, it’s really going to have very little impact on a customer's power bill when we are seeing double digit price rises year-on-year.

"Energy efficiency is important for the long term greater good of the country, but customers have to get real and look to switching to cheaper retailers if they want to see some real savings on their energy bills."