Rising energy prices

                                       Energy Rating Service

THE average Victorian household will pay an extra $300 for their energy bills this financial year, a new report has found.
A report by St Vincent de Paul Society also showed that average household energy bills – including electricity and gas – had risen by as much as $1100 in some regions, over the past four years.
During this time, the report found electricity prices increased by between 60 per cent and 80 per cent, and gas by between 45 per cent and 52 per cent, depending on the region and the energy retailer.
Average household electricity bills jumped an average 12.5 per cent on July 1, compared with January this year, and by 11 per cent for gas.
St Vincent de Paul Society’s policy and research manager, Gavin Dufty, says about 8 per cent of those increases could be attributed to the carbon tax.
He said investment in ”poles and wires”, green schemes and increased retailer costs had contributed to the overall price increases since 2008.
”During this time wholesale prices have actually fallen, so that means other factors are driving these increases, including investment in transmission and distribution, which is our poles and wires, government interventions such as smart meters, feed-in-tariffs and renewable energy targets, and increased retailer costs due to greater administration and regulatory compliance.”
The report found dual-fuel households – which use both gas and electricity – in the western region, including Hoppers Crossing, Werribee and the Geelong area, and northern Victorian towns such as Echuca, Shepparton and Heathcote will experience the largest price rises this year – up $315.
Households in the inner eastern suburbs, inner south-eastern and inner bayside suburbs, from Kew to Armadale and Toorak, St Kilda and Albert Park, are expected to experience the smallest rises – of $195. The report is based on standing offers, which are the retailers’ default prices without any discounts.
But those on discounted contracts – known as market offers – are expected to experience similar price rises, in percentage terms.
Mr Dufty said consumers could offset some of the price rises by shopping around.
”The report shows the difference between the single best market offer and the single worst standing offer can be up to $270 a year for average consumption households, and even more for high-consumption households,” he said.