NO CPRS - SO WHY ARE POWER BILLS GOING UP SO MUCH?

Tuesday, 15 December 2009 15:11

New South Wales electricity companies intend to charge consumers over $16 billion in the next 5 years, ignoring major energy savings that could reduce bills and greenhouse emissions, Total Environment Centre (TEC) said today.

The Independent Pricing and Regulatory Tribunal (IPART), which flagged prices rises up to 62% today, has pointed to network expansion and the Federal Government’s proposed emissions trading scheme as the cause. Yet with the Carbon Pollution Reduction Scheme at least three years away, it is clear that price increases by the state’s electricity network businesses are the main cause.

“New South Wales electricity companies have launched an unprecedented ‘expand and pollute’ mission for which consumers and the environment will pay dearly,” said Jane Castle, Senior Campaigner at TEC. “The best way to deal with rising electricity demand is to harness the quick, cost-effective energy savings that are on offer. Regulators must send the businesses back to the drawing board.”

Over $16 billion is proposed to be spent on capital investment by the NSW electricity distribution and transmission companies, Country Energy, Energy Australia, Integral Energy and TransGrid. The companies, however, only propose to spend a bare minimum on energy saving measures, despite these being four times cheaper than building more ‘poles and wires’. Energy Australia for example is proposing to spend less than 0.5% of their budget on energy efficiency and demand management.

“It’s ironic that as Copenhagen gets into full swing, the New South Wales networks are planning for more pollution, more carbon costs and global warming risks for New South Wales families,” said Ms Castle.

The NSW proposals put total network spending in NSW, Victoria, QLD, SA, ACT and Tasmania at over $40 billion for the next 5 years.

“Energy ministers and regulators are on trial. They must require monopoly electricity companies to deliver savings and reduced emissions that will cut energy bills. This is an expensive and irresponsible addiction to infrastructure. More steel in the ground means hotter, more dangerous summers for the people of New South Wales. A complete overhaul of the energy market is long overdue.”