Increases in electricity prices welcome in the New Year
Author: Cherry Energy Solutions
After a tumultuous end to 2016, we have been waiting to see what the start of the new year will mean for electricity prices.
Origin customers in Victoria, have been the first to face residential price increases this year, now expected to pay an average of $94 more in 2017, with small businesses hit on average with an increase of $297. Energy Australia and AGL have increased electricity tariffs by $135 and $132 on average for the year respectively – exceeding all estimates (The Australian, 2017).
Similarly, in New South Wales, Red Energy has increased some of its tariffs from 21.2c/kWh to 24c/kWh.
It has been confirmed in a review by Morgan Stanley that electricity demand fell by about 1% nationwide over the last six months, but supply plunged by nearly 25% in the same period.
With a carbon tax and emissions trading scheme off the table again, prices will continue to face the volatility associated with uncertainty and disequilibrium and both businesses and individuals will suffer as a result.
While national climate policy continues to backflip, it is sensible for larger businesses in particular to take control of their energy usage and improve their energy efficiency where possible with innovations such as LED lighting, solar energy, energy monitoring, energy broking and energy storage.
Get in touch today to find out what you can to do combat electricity price increases.