It is usually a hot election issue, but now the Government has made it official, power prices in Australia are going to rise from next year.
On average, the yearly electricity bill is going to go up to $40 which Australian Energy Market Commission Chairman, John Pierce, suggest two main reasons. The first reason is because of the Federal Government’s commitment to the renewable energy target. The second reason being the closure of Hazelwood coal power station in Victoria.
In a statement to the media, Mr Peirce stated “Across the national electricity market the generation mix is changing — with the large-scale renewable energy target leading to substantial investment in wind generation,” he said in a statement.
“This is contributing to the closure of coal-fired plants and increasing wholesale and retail prices.”
According to the AEMC report, once the Hazelwood plant was closed $78 was added to the national average yearly power bill, while Tasmanians were socked with $204 rise and Victorians with a $99 rise.
At this stage the only areas of the country that will not see a rise in their power bills from next June are Tasmania, who already had a massive hike and Queensland.
The Federal Government is currentaly reviewing its renewable energy policies while Prime Minister Malcolm Turnbull promises his government will not introduce an emission trading scheme so that they can help hold the reignas from keeping the energy price increasing.