Green Energy
As soaring electricity prices bedevil households, industry leaders say consumers are just as responsible for increasing costs as the bodies that supply, deliver and regulate power.
In rare public comments, they say the way to save money is to use less electricity.
"Consumers need to look after their own interests by understanding how their lifestyle and behaviour (affects) their power bills, managing their electricity use, and actively pursuing the lowest prices," they said.
The Herald Sun surveyed the bosses of the companies that build and maintain the poles and wires that distribute power.
They are United Energy's Hugh Gleeson, Jemena chief Paul Adams, SP Ausnet's Nino Ficca, and Shane Breheny, of Citipower and Powercor.
About 40 per cent of each household's power bill ends up with one of these five distributors, which rake in $1.3 billion a year from their local electricity operations.
Victorian power bills surged by an average 20 per cent last year, according to St Vincent de Paul.
Electricity retailer Simply Energy was recently criticised for advising customers to save on energy costs by knitting tea cosies.
In a joint response to questions from the Herald Sun, distribution bosses blamed price rises on:
RISING consumption.
BIG-SCREEN TVs and airconditioners, which heavily draw on power.
THE need to replace old infrastructure.
COSTLY low-emission power sources.
Distributors say higher consumption usually requires them to build more infrastructure, which forces them to invest and, thus, charge more.
They would not concede that Victorians paid too much for power, saying the state's electricity was among the cheapest in Australia and that strict government regulation stopped them dudding consumers.
Australia's power distribution industry is growing by $2 billion a year, says IBISWorld.
Energy Retailers Association of Australia director Cameron O'Reilly said rising distribution costs linked to smart meters and increased consumption were driving the increase in Victoria's power costs. "Networks are around half the total bill and it's been a rising component in recent years," he said.
The Australian Energy Regulator decides how much distributors should be allowed to spend and charge consumers.
But its decisions are often overturned when networks challenge them in court, allowing them to charge customers more.
Energy Minister Michael O'Brien wants the regulatory system overhauled.
"I am concerned the current system does not effectively balance the interests of consumers and network businesses," he said.
About 10 per cent of any electricity bill goes to the retailers, such as Origin or TRU, which deliver bills, another 10 per cent goes to governments in fees and taxes and 40 per cent goes to energy producers.
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Green Energy
Consumers at fault as well say Chiefs are prices soar
As soaring electricity prices bedevil households, industry leaders say consumers are just as responsible for increasing costs as the bodies that supply, deliver and regulate power.
In rare public comments, they say the way to save money is to use less electricity.
"Consumers need to look after their own interests by understanding how their lifestyle and behaviour (affects) their power bills, managing their electricity use, and actively pursuing the lowest prices," they said.
The Herald Sun surveyed the bosses of the companies that build and maintain the poles and wires that distribute power.
They are United Energy's Hugh Gleeson, Jemena chief Paul Adams, SP Ausnet's Nino Ficca, and Shane Breheny, of Citipower and Powercor.
About 40 per cent of each household's power bill ends up with one of these five distributors, which rake in $1.3 billion a year from their local electricity operations.
Victorian power bills surged by an average 20 per cent last year, according to St Vincent de Paul.
Electricity retailer Simply Energy was recently criticised for advising customers to save on energy costs by knitting tea cosies.
In a joint response to questions from the Herald Sun, distribution bosses blamed price rises on:
RISING consumption.
BIG-SCREEN TVs and airconditioners, which heavily draw on power.
THE need to replace old infrastructure.
COSTLY low-emission power sources.
Distributors say higher consumption usually requires them to build more infrastructure, which forces them to invest and, thus, charge more.
They would not concede that Victorians paid too much for power, saying the state's electricity was among the cheapest in Australia and that strict government regulation stopped them dudding consumers.
Australia's power distribution industry is growing by $2 billion a year, says IBISWorld.
Energy Retailers Association of Australia director Cameron O'Reilly said rising distribution costs linked to smart meters and increased consumption were driving the increase in Victoria's power costs. "Networks are around half the total bill and it's been a rising component in recent years," he said.
The Australian Energy Regulator decides how much distributors should be allowed to spend and charge consumers.
But its decisions are often overturned when networks challenge them in court, allowing them to charge customers more.
Energy Minister Michael O'Brien wants the regulatory system overhauled.
"I am concerned the current system does not effectively balance the interests of consumers and network businesses," he said.
About 10 per cent of any electricity bill goes to the retailers, such as Origin or TRU, which deliver bills, another 10 per cent goes to governments in fees and taxes and 40 per cent goes to energy producers.
More Here
- Australia Hits The 1 Million Mark!!
In our latest Green Energy WA news. Australia has reached one million rooftop solar systems installed on homes and businesses, capping off a massive rise over the past decade of federal and state incentives. Time to buy solar?The one million mark was...
- Pm Gillard On Surging Power Prices
As Prime Minister Julia Gillard addressed the Energy Policy Institute of Australia (EPIA, she likened the surging costs of household power bills to petrol prices.. Ms Gillard accepted that prices of energy had increased at unprecedented levels,...
- The Truth Finally Surfacing
Electricity prices to rise 37% – solar power only a bit playerA report from the Australian Energy Market Commission (AEMC) estimates residential electricity prices are projected to jump by 37 per cent in nominal terms on average by 2014....
- 80,000 South Aussies Switch On To Solar
A new report from the Essential Services Commission of South Australia (ESCOSA) estimates 80,000 electricity customers in the state will have installed solar panels by December this year. This figure represents around 10% of all small electricity customers...
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By Ross Kelly Published Dow Jones Newswires SYDNEY -(Dow Jones)- Australia's carbon tax won't have a significant impact on the country's household electricity prices, which will remain competitive with those in other developed countries, the...