News Karnataka
Tuesday, July 05 2022

Australian power bills to soar amid global pressures - 2 min read

Photo Credit : IANS

Canberra: The Australian Energy Regulator (AER) on Thursday announced a final price increase from July, citing that the ongoing Russia-Ukraine war has put “significant” pressure on global coal and gas prices.

The starkest price increases will come for residents in the state of New South Wales (NSW), where electricity prices will surge by 8.2 per cent adjusted for inflation and by 5.5 per cent for those in Queensland, reports Xinhua news agency.

This means that the average resident in NSW capital Sydney would be paying around A$100 ($70) more on electricity each year, adding even more pressure on residents being squeezed by a headline inflation of projected 5.5 per cent.

The AER report cited a compounding of factors leading to the surge, including included both domestic production outages and extreme weather in NSW and Queensland, coupled with international conditions.

“Factors contributing to increases in the draft forecasts included a reduction in thermal generation resulting from unplanned outages and higher coal and gas costs, slowing of investment in new capacity, and increasingly ‘peaky’ demand,” said the report.

“These conditions have persisted and been compounded by the ongoing war in Ukraine, which has led to significant pressure on coal and gas prices globally.”

The AER sets Australia’s Default Market Offer (DMO), the maximum price that private energy retailers can charge consumers.

Following the announcement, the peak body for energy retailers and generators the Australian Energy Council (AEC) urged consumers to shop around to soften price shocks.

“An increase to the DMO is news that most of us could have done without. No one likes to see prices rise, and with the current cost of living pressures, it’s important that consumers shop around for the best deal,” said AEC Chief Executive Sarah McNamara.

See also  Instagram tweaks algorithm after 'censoring' pro - Palestinian content

“Default offers are not the cheapest deal out there, they exist for customers who aren’t shopping around for a better energy deal,” she added.

Support NewsKarnataka's quality independent journalism with a small contribution.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Leave a Reply

Your email address will not be published.

Subscribe to our Podcast across platforms
AnchorAmazon MusicSpotifyGoogle PodcastsRadio PublicRSS

Visit 7Jackpots and find the best online casinos in India! Play the most popular casino games for real money!

Find the best odds at 10Cric and ipl betting 2021! Signup today and get up to a 100% deposit bonus.

Subscribe Newsletter

Get latest news karnataka updates on your email.

To get the latest news on WhatsApp