Energy costs for Canberrans could increase by as much as 11.95 per cent following the Independent Competition and Regulatory Commission’s (ICRC) annual update of regulated retail electricity prices.
In response to the ICRC update, Chief Minister Andrew Barr announced direct financial support to around 31,000 lower and fixed income households.
In a statement, the ICRC said the main reason for the increase in retail prices was the 36.91 per cent increase in network costs, which reflected the increase announced by the Australian Energy Regulator (AER).
“The network costs approved by the AER have increased for two reasons; higher transmission and distribution costs made up 2.70 percentage points of the increase in retail prices,” the ICRC said.
“The cost of the ACT Government’s scheme, including the large-scale feed in tariff, contributed 13.13 percentage points to the price increase,” it said.
Senior Commissioner for the ICRC, Joe Dimasi said the Regulator’s report, PRICE RECALIBRATION: Retail electricity price recalibration 2021–22: standing offer prices for the supply of electricity to small customers, showed that if standing offer prices increased by the full 11.95 per cent, it would result in a bill increase of $3.76 per week for a typical Canberra household.
Mr Dimasi said for an average small business, the bill increase would be $14.45 per week.
He said consumers should contact their retailer to ask if they had a better offer that could save them money.
Mr Barr said while the ICRC decision came after a period of lower prices, he recognised the increases would be difficult for some households.
He said that as an immediate response to the ICRC update, the annual utilities concession would be permanently increased by $50 to $750; an additional one-off $50 increase to the utilities concession for 2021-22 would be provided; $1 million would be contributed to the Utilities Hardship Fund over four years; a co-governed energy literacy and education program would be established; and access to the Utilities Concession would be expanded.
The ICRC’s 26-page Price Recalibration Report can be accessed at this PS News link.
