Energy price rises hit low-income families
A new Energy Rebate from July 1, 2011 to assist families with an 18 percent increase in electricity prices is a welcome relief, but is the cost of a poor energy pricing system.
Today’s announcement by the Independent Pricing and Regulatory Tribunal (IPART) that energy prices in NSW will rise by nearly 18 percent from July 1, 2011 with further rises of up to 10 percent from July 2012 illustrate that the NSW energy market is unsustainable.
“While ANGLICARE Sydney welcomes the NSW Government’s increased Energy Rebate and continued emergency Energy Assistance, these rebates are the cost of an inefficient energy market”, said Peter Kell, CEO ANGLICARE Sydney.
“I completely support IPARTs call for the Federal Government to ensure network prices for energy reflect the efficient cost of supply.
“Commercial relationships between energy retailers, providers and the Government are failing to deliver a fair and transparent price for energy – all households suffer as a result”, said Mr Kell.
ANGLICARE Sydney has found that low income households will always be most disadvantaged by rising energy prices because they spend the highest proportion of their income on bills.
“For many families, getting an energy bill puts them in crisis. This is simply a devastating way to live. Relying on ever-increasing rebates is not a sustainable policy response”, said Mr Kell.
ANGLICARE Sydney notes that further increases in energy prices by up to 10 percent from July 2012 will potentially create a price hike of 28 percent in one year.
“Deeper reform of energy pricing needs to occur to ensure that we have a sustainable and transparent pricing system for energy.
“I call on the State Government to review its commercial relationships with electricity providers and work with the Federal Government to reform the National Electricity Rules” said Mr Kell.
