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VIC households being hit with rising service charges

Households have been hit with power price rises of up to 39 per cent before they actually turn on a light or light the stove.

News Limited reported that Victorian bill payers are paying up to $477 a year before being charged for using power as a result of increasing service to property charges  - such as increasing meter costs, network expenses and green schemes.

Energy analyst with St Vincent de Paul, Gavin Dufty, said that another reason is that businesses are trying to severely reduce their energy consumption to protect their bottom line.

He explained: "Some of these significant increases [to power bills] are due to changes in poles and wires charges, but we believe another reason is companies making up for a shortfall in revenue from reduced energy consumption."

Other states are doing what they can to reduce power, with the South Australian government announcing on January 31 that it will monitor electricity prices in a bid to get a better deal for consumers.

Chief Executive of the Energy Retailers Association, Cameron O'Reilly, said reforms came in on February 1 which fosters better competition between electricity and gas suppliers.

Talk to a comparison and switching service to investigate if there is a better deal out there for you.

Posted by Charlie Moore