Minister Barr: ICRC releases final electricity prices
- Written by ACT Government
Released 08/06/2017
Joint media release: Chief Minister Andrew Barr MLA and Shane Rattenbury MLA
The Independent Competition and Regulatory Commission (ICRC) has today released its final determination of electricity prices and the price direction for the next three years.
In making its final determination, the ICRC has announced that electricity prices in the ACT will increase by 18.95% from 1 July 2017.
This is a particularly disappointing outcome for the ACT, these increases are driven by the failure of the National Electricity Market, the closure of the coal fired plant at Hazelwood and, critically, a failure of national leadership. The continual ideological debate at the national level has led to a sustained period of inaction over the very real issue of sustainable and affordable energy prices in this country.
In contrast to the dithering at the national level, the ACT Government has done what it can to make the right investments in sustainable renewable energy – locking in 20 year fixed price contracts as we move towards 100% renewable energy powering the territory by 2020. As a result, Canberra households will be shielded from future wholesale price rises.
In its report, the ICRC estimates the costs for wholesale electricity for ACT and NSW retailers will increase by 50% from 2016-17 to 2017-18, accounting for 13.26% of the total 18.95% increase, or more than two-thirds.
The ACT Government will provide matched funding of $250,000 to an Energy Support Fund established by ActewAGL for customers that may face significant hardship from these new electricity prices. The $500,000 Fund will be used for energy vouchers distributed through community groups to families struggling with their energy bills and a solar grants program for eligible community organisations. ActewAGL will also establish a dedicated Bill Help Hotline to provide all customers with information on rebates and concessions.
The ACT Government also has an existing range of measures in place to support ACT households and businesses with their electricity and water costs, with a particular focus on vulnerable consumers. Discounts of up to $600 per year are available to eligible concession card holders. The ActSmart Program provides free information, tools and advice to assist with the management of energy costs. Our Energy Efficiency Improvement Scheme (EEIS) is also assisting households and businesses cut their energy bills. To date over 75,000 household have participated in the EEIS. Over the past few months alone, over 300 small and medium sized businesses have benefitted from the extension of the scheme to business.
There continues to be ongoing uncertainty around the Federal Government’s future energy policy and how Australia is going to meet our Paris Agreement commitments. This uncertainty has stalled investment in new generation and prevented new capacity from coming online to backfill aging coal power stations which are withdrawing from the market. In turn, at a national level we are becoming more reliant on expensive gas generators.
Despite the increase, ACT households and businesses will continue to have some of the lowest cost and most reliable electricity in country. Canberrans will still be paying hundreds of dollars less than our neighbours across the border in New South Wales.
We encourage Canberrans to take the time to talk to their energy provider about getting the best deal to suit their needs, or to shop around for a better offer. There are also online tools such as Energy Made Easy that can help households to compare plans. Last year the St Vincent de Paul Society found that ACT consumers were missing out on up to $175 of annual savings by not switching to a more cost effective energy plan.
For more information on the final electricity prices decision please visit www.icrc.act.gov.au. You can also contact the Commission on 6205 0799 or via icrc@act.gov.au.
- Statement ends -
Section: Andrew Barr, MLA | Media Releases
