INDEPENDENT Member for Port Macquarie, Peter Besseling, wants the NSW Government to use some of its projected billion-dollar windfall from electricity company dividends to help families and pensioners pay for massive increases in their power bills.
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“The Independent Pricing and Regulatory Tribunal (IPART) has approved increases of up to 64 per cent in electricity bills to help pay for upgrades to Country Energy’s network of poles and wires,” Mr Besseling said.
“Given our community’s population is the oldest in the state, and family incomes are among the lowest in the state, these increases will have a significant impact on local household budgets.
“At the same time the bills are going up to pay for network upgrades, the government is expected to reap almost $1.7 billion in profits from the energy providers, a windfall that I’ve asked the Premier to use to help ease the financial hardship on local families and pensioners,” Mr Besseling said.
IPART’s determination will see Country Energy prices increase by 13 per cent from July 1, and 64 per cent by 2013 if the federal government’s Carbon Pollution Reduction Scheme is adopted, although federal assistance packages are expected to reduce the cost impost for low- to middle-income earners.
“A typical Country Energy household can expect to pay $918 more for their power in 2013, or an extra $601 without the carbon tax; an impost most pensioners and families in our community will struggle with,” Mr Besseling said.
“One way of reducing the impact of the price rises is through demand side management across the state that will benefit all households.
“We are awaiting confirmation of additional relief measures announced by Premier Kristina Keneally in question time (last Thursday),” Mr Besseling said.
Shadow Energy Minister Duncan Gay called on the government to reject IPART’s recommended price rises.
“It’s astounding that in Question Time today Energy Minister John Robertson said the price rises are “disappointing” when it’s his Government’s 15 years of mismanagement that has caused them,” Mr Gay said.
“It’s almost criminal that it’s the struggling NSW families and businesses that will have to pay the final price.”
Mr Gay said after last year’s 20 per cent price increase 18,000 people had their power cut off and Energy Australia had an extra 36,000 customers on bill extension or payment plans - a 30 per cent increase on the previous year.
Ben Freund, goswitch.com.au CEO believes that Australia will experience a jump in ‘fuel poverty’ as the working poor struggle to keep up with electricity price rises. ‘Fuel poverty’ can be defined as when people are spending 10% of their income or more on electricity and gas.
www.GoSwitch.com.au is a price comparison service for electricity and gas. Mr Freund encouraged people on low incomes to talk to their retailer about energy management and hardship programs - and of course to make sure they are on the cheapest plan.
