One of Australia’s biggest energy companies has warned that retail electricity prices may increase by more than 35 per cent next year.
Key points:
- Russia’s invasion of Ukraine, and transitioning away from fossil fuels, have increased energy costs across the world
- Australian consumers have already experienced big increases in electricity prices in recent years
- There are concerns about the amount of work needed to ensure reliable renewable power as the nation transitions away from fossil fuels
The projection is based on current forecasts and ongoing costs and would place further pressure on households already struggling with the cost of living. Alinta Energy chief executive Jeff Dimery told the Australian Financial Review’s energy and climate summit that an up-front conversation needed to be had. “When we run our modelling for energy pricing next year, using the current market prices, tariffs are going up a minimum 35 per cent,” Mr Dimery said. “Now, maybe, the regulators are going to change the rules on that, I’m not sure. “Russia’s invasion of Ukraine has increased energy costs across the world, but Mr Dimery also highlighted the cost of transitioning away from fossil fuels in Australia.
Joel Gibson from the consumer advocacy group One Big Switch has reported tariff increases from 43 per cent to 285 per cent as energy retailers respond to a surging wholesale market.
Those concerns were shared by Energy Australia’s chief executive, Mark Collette.
Australian consumers have already experienced big increases in electricity prices in recent years, so now is the perfect time to consider solar power for your home.
OCTOBER 2022