NSW budget sees rise in electricity prices

Budget causes spike in electricity prices 16000646 800468159 0 0 7029004 300

Electricity prices will rise up to $12 a year according to details contained in the NSW state budget.

The coalition government has said that the Solar Bonus Scheme - implemented by the previous labour party - has simply cost too much for the burden to be borne by the state alone.

In his budget speech yesterday (September 6), treasurer Mike Baird said: "The cost of the scheme, initially thought to be $355 million, has since blown out to $1.75 billion, delivering a significant blow to the budget."

Baird claims that $260 million of this has been absorbed by the government in the budget, however consumers should expect to have to make a contribution as well.

Baird says: "This is expected to increase annual average electricity bills by around $10 to $12 per household."

The news is likely to be met with disappointment by NSW households already struggling with the current cost of energy in the home.

Prices will rise in 2013, with the government saying that it "regrets the impact this will have on electricity users," however it has deemed it a necessary measure.