The Independent Competition and Regulatory Commission (ICRC) has decided that electricity charges in the ACT can rise by a maximum of 14.9 per cent from 1 July.
Deputy Director-General of Sustainability and the Built Environment at the Environment, Planning and Sustainable Development Directorate, Geoffrey Rutledge said the proposed electricity price increase was largely a result of rising wholesale prices.
“Due to a lack of market certainty, underinvestment in power generation is leading to a shortfall in supply,” Mr Rutledge said.
“The ACT is part of the National Electricity Market, and the bulk of the announced increase is outside the control of the ACT Government.”
He said, however, that ACT households and businesses would continue to have some of the lowest-cost and most reliable electricity supplies in the country with, Canberrans paying hundreds of dollars less per year than NSW.
“The ACT’s renewable energy scheme costs will also remain well below the $5.50 per household per week previously estimated, and the Government remains confident that this will decline after peaking in 2020,” Mr Rutledge said.
“The ACT Government knows that Australia’s energy future is renewables — that’s why we continue to invest in sustainable electricity generation, and why we are leading the nation with our decisive and forward-thinking energy policy.”
He said the Government would again join with ActewAGL to provide a support fund of $500,000 for Canberrans struggling with their power bills.
Mr Rutledge said from 1 July, the Utilities Concession for eligible low-income households would increase from $604 to $654 per year to assist with electricity costs.
He said the ICRC’s decision sets the maximum average nominal increase in ActewAGL Retail’s basket of regulated tariffs for 2018–19 at 14.29 per cent, which is a real increase (excluding inflation) of 12.16 per cent.
He said if ActewAGL Retail increased prices by the full 14.29 per cent, this would translate to an increase of up to $299 in the annual bill (or about $5.73 a week) for a typical Canberra household consuming about 8,000 kWh per year.
