NSW residents could be slugged with a 17 per cent electricity price rise in July if networks win their bid to increase revenue.
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The state’s price trends for the next three years hang on the findings of an Australian Competition Tribunal case reviewing network revenue.
An Australian Energy Market Commission spokeswomen said Victorian and NSW prices would remain relatively flat, but a worst-case scenario of the tribunal could mean dramatic changes for NSW.
![ANSWER IN THE SKY: Albury retiree Ken Kurnow will consider taking up solar if prices rise by 17 per cent in the worst-case scenario of the Australian Competition tribunal. Picture: ELENOR TEDENBORG ANSWER IN THE SKY: Albury retiree Ken Kurnow will consider taking up solar if prices rise by 17 per cent in the worst-case scenario of the Australian Competition tribunal. Picture: ELENOR TEDENBORG](/images/transform/v1/crop/frm/ellen.ebsary/f20616b0-9fbc-4221-a4b4-fc25b0bba452.jpg/r0_257_4172_3347_w1200_h678_fmax.jpg)
“The question mark of what is going to happen to energy prices in NSW over the next three years has to do with the outcome of the tribunal case,” she said.
“They’ve taken evidence from the network businesses and also the consumer advocacy group but they haven’t brought their final decision.
“Networks are seeking increases in revenue that could mean a 17 per cent rise …. and consumer advocates are seeking decreases by a further four per cent.
“The tribunal could give the consumer advocates everything or nothing.”
Increased renewable energy resources are also tipped to add to price volatility.
“When renewable energy generation first comes into the market, it adds to supply and suppresses wholesale costs,” she said.
“As you’re starting to see a change in the structure of the market to more renewable, with the exit of the big thermal generators, we’re seeing reducing supply which puts pressure on the wholesale market.”
In 2014, a representative consumer on a standing offer using 5936 kWh each year, had a total annual bill of $1,876.
A 17 per cent increase would raise costs by more than $300.
Long-time Albury resident Ken Kurnow said an increase would make him consider converting to solar power.
“If the cost rises that high we would investigate getting solar,” he said.
“It all depends how much they’re going to give permission to raise power bills.”
Mr Kurnow said he knew of many retirees in the Border region who had dealt with increasing energy bills over the years and made the switch to solar.
“Pure and simple because of cost,” he said.
“You can feed back into the grid, get a return on it.
“If it gets to the stage where implementing solar energy becomes economic ... the government is only delaying the inevitable.”
An iSelect spokeswomen said many residents hadn’t reviewed their energy contracts in years.
“With generous introductory rebates or discounts on electricity of up to 37 per cent in Victoria and 20 per cent in NSW it pays to shop around,” she said.
“It's really important to look at how you currently consume energy to help determine whether solar is the right option for your home.”