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Rising electricity prices hit Adelaide hard

Residents of South Australia are facing considerable increases in the cost of living, with those living in Adelaide among the worst hit.

Inflation is taking its toll on many homeowners at the moment, as electricity prices are on the rise alongside other utilities such as water and gas.

In a series of reports by the Adelaide Advertiser it has been explained that the inflation rate in the city was 3.6 per cent last year, which is considerably higher than the 2.4 per cent recorded in Brisbane.

Figures from the Australian Bureau of Statistics show that in 2011, the cost of electricity increased by 30 per cent in Adelaide, while water and sewerage costs rose 14 per cent.

Michael O'Neil, executive director and associate professor at the SA Centre for Economic Studies, noted that the government's decision to increase fees and charges has not helped the situation.

"A higher inflation rate than other capitals is something unions look at with wage demands in order to maintain workers real purchasing power," he told the news provider.

The Grattan Institute recently reported that the cost of low-emission technologies needs to be reduced in order to lower the price of electricity.

It is also essential for carbon emissions targets to be met in the future, the report established.

Posted by Charlie Moore