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Victorians face increase to electricity prices due to Black Saturday Bushfires

Victorians may be facing additional increases to electricity prices in order to compensate for the damage caused by the black saturday bushfires  16000646 800485643 0 0 7006845 300

Victorians may be facing additional increases in their electricity prices in order to compensate for the damage caused by the Black Saturday Bushfires which tore through the state in February 2009.

Electricity supplier SP AusNet is currently the subject of a class action lawsuit, with the Victorian government accusing the supplier of failing to take proper safety measures which contributed to the Kilmore East fire.

SP AusNet has denied responsibility and vowed to fight the lawsuit in court, which could see the supplier facing charges of $22 million if found guilty.

However a draft decision released by the Australian Energy Regulator (AER) earlier this week (August 29) has paved the way for SP AusNet to pass on these costs to consumers if they are not fully covered under the supplier's insurance policy.

A separate claim was settled earlier this year regarding SP AusNet's responsibility for the Beechworth bushfire, with the supplier reaching a $19.7 million agreement with the victims' families.

SP AusNet share prices increased by three per cent in the wake of the draft decision.

Posted by Charlie Moore