Power companies use green credits to lift prices

New South Wales utilities companies have justified recent increases in electricity prices on the consumer demand to buy green credits.

Energy retailers are buying them from solar panel system installers and other tradespersons such as plumbers and electricians.

Subsequently they have raised rates for electricity to cover the costs, impacting households across NSW.

Companies that overcompensate for the purchase price are able to net the difference in price for themselves.

The Renewable Energy Regulator raised the number of certificates that energy retailers must buy to cause an increase in the price of green credits.

Climate change opposition spokesman Greg Hunt has told the Daily Telegraph, "It's resulted in higher electricity prices and Labor is doing nothing to help people with their skyrocketing power bills or small solar businesses who've been caught out by this scheme and are losing hundreds of thousands of dollars."

The nation-wide renewable energy switch is going to impact consumers in a number of ways chiefly, increases in their household bills as power companies pass on the cost of large-scale redevelopments and initiative adoptions.

Consumers can benefit by comparing the rates offered by providers and simply switching to a cheaper alternative.