Gas and electricity prices skyrocket

Thanks to rising prices, you could soon be paying more for your gas and electricity bills.

According to reports, Canberra residents could be paying $580 extra per year, and the average New South Wales family could be paying as much as $660 extra. 

Why is there such a marked change in the cost? Wholesale prices of gas and electricity are rising, which means the retail value must also be passed on to consumers.

Coal-fired power stations have also been closed in Victoria and Queensland, and there are concerns about the reliability of some power generators.

A Council of Australian Governments (COAG) meeting is taking place in Hobart today, and the future of Australian energy is on the agenda.

Australia’s chief scientist Dr Alan Finkel will present his findings on a national energy policy at the COAG meeting. Prime minister Malcolm Turnbull is looking to the report for guidance.

“The important objective we have is to take the ideology and politics out of this issue,” says Turnbull.

“The focus has got to be to achieve those three things: affordable electricity, reliable and secure electricity, and of course meet our emissions reduction targets. That’s the task Dr Finkel has been set.”

Finkel’s report is centred around the introduction of technology-neutral versions of Australia’s renewable energy targets. If Finkel’s clean energy targets are met, prices would be expected to decline.

However, this won’t happen immediately. While the Finkel report may be made available at today’s COAG meeting, no official response is expected from the government until July.

These clean energy targets could also result in more closures of coal-fired power plants, but any operators of such plants would be required to give their employees three years’ notice of any closure.

Workers were given just six months’ notice of the closure of Hazelwood Power Station earlier this year.

It seems until politicians can come to an agreement on clean energy targets, Australians will have to cope with the gas and electricity price rises as they occur.

How will these price hikes affect you and your family?