Potentially the city’s power bills could rise from $3.6 million last financial year to $5.5 million in the year 2012-13.

Such a rise could equate to a 7 per cent rates rise by 2012 on top of any normal rise of about 3 per cent.

A three-year electricity price structure approval in NSW by the Independent Pricing and Regulatory Tribunal this week will see Country Energy prices rise 64 per cent overall and Energy Australia prices 46 per cent.

Last year the council paid Country Energy more than $1 million for supplying electricity and Energy Australia a further $2.6 million.

Acting general manager Michael Keys conceded yesterday that the power costs would become an increasing burden on the city coffers.

Efforts had already been made to reduce consumption across facilities and find alternative methods such as using different light globes and these efforts would be ongoing.

Former finance chairman and rates officer Cr Rob Angus said he could see little option but to ask the State Government to exempt the city from the rate-pegging rule that Albury has always kept to in the past.

He said the price announcement was alarming for the council and he and other councillors would seek a report on the implications as the budget meetings approached.

Street lighting and water supply and sewerage pumps account for much of the council’s electricity bills.

About a third of the proposed rises stems from the Rudd Government’s carbon emissions trading scheme.

Albury Council’s general rate rose 3.5 per cent this financial year and raised almost $1 million.

Last month the Government announced it would allow general rates in NSW to rise only by 2.6 per cent in July, the lowest percentage for years but related to an anticipated inflation rate of 2.1 per cent.

The council is able to raise extra cash by raising other charges, and last year imposed a 10 per cent price rise across the board.