Rising energy costs in Australia

When there is a surge in the price of energy consumed, it’s only natural for business to question the amount (and often times the validity) of the bill. Our energy consumption is questioned together with the use of our lighting. Questions arise such as are the bills accurate? Could the meter reading be wrong? What lights did we forget to switch off overnight? Sometimes our doubts are proven to be correct sometimes not, but it’s good to question bills and compare with that of our neighbouring offices and businesses.

The prices of energy in Australia are unusually high and worrisome to its residents, and this article would provide reasons for such hike.  With the enormous differences in the rate of retailers, the price of electricity in Australia depends on where in the country you live in, what state and city, when you use the power, what’s your electricity plan, and what’s the tariff of your energy plan. Electricity retailers in this country offer peak and off-peak rates to consumers based on the variation they choose. The amount of energy you can pay for in Australia depends on the size of your house and the number of appliances you make use of at home.

According to a report on the ACC (2017) website, the National Electricity Market saw their wholesale price of electricity rise by 130%, leaving households to pay an increase of up to 20% because of a few reasons namely:

Reduction in the supply of power and an increase in the price of energy because of the two low-cost, significant, and old power station which are coal powered. These stations closed in the northern territory and Hazelwood. This reason accounts for $6 billion increase in the price of the energy and a 60% increase in value traded between now and 2015.

The cost of elements such as gas and coal has risen to leave their plants helpless in production and causing a 40% increase in the price of wholesale energy.

Energy generators manipulate the system. With the use of their powers they create a false scarcity of supply, and in turn, the prices surge higher than before. 

With the events going on in the country making this such a hot topic (pun intended), Australians would be optimistically unrealistic in expecting to see the price of their electric energy reduce anytime soon. However, they can take alternative methods in reducing their energy consumption while waiting for the government to play its parts and carry our new investment plans in the NEM.

Even though the cost of electricity in the country is still rising, Australian especially those who live in Southern Australia should take measures to curb their consumption rate while waiting for the government to fix the issue in general. LED Lighten is focused on education its commercial clients on ways to reduce the impact of energy consumption on their lighting bills. Our publicly accessible online calculator tools are designed to give you a snapshot of a better tomorrow and out team will help take you there. Contact us today on 1800 533 123.