Society's love affair with flat screen televisions and air conditioning could drive power prices above the $244 increase currently proposed for the ACT, according to Environment Minister Simon Corbell.
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In a draft pricing decision , the ACT Independent Competition and Regulatory Commission has proposed lifting ACT power prices almost 20 per cent, with the Federal Government's carbon tax making up more than 75 per cent of the jump.
The Commission said that that about $3.65 of an expected average household weekly increase of $4.70 is attributable to the carbon tax.
Mr Corbell said federal and ACT Government benefits would help Canberra residents to cover the higher costs and households needed assistance to reduce their energy use.
“What is inevitable is rising electricity costs because as a society we are using more and more electricity," he said.
“More of us are putting in air conditioners, more of us are buying big flat-screen televisions. These devices consume more and more energy and that means electricity companies have to build more poles and wires to service that demand and that pushes up costs."
The proposed price increase would begin on July 1. Submissions on the proposed increase are sought by the commission by May 8.
Senior commissioner Malcolm Gray said that under the commission's draft price direction, regulated electricity prices would increase by 17.22 per cent.
"The rise in regulated retail tariffs is largely attributable to increases in the cost of wholesale electricity with a smaller contribution coming from network fees," Mr Gray said.
"It would appear that the increase in the cost of wholesale electricity is almost entirely attributable to the introduction of a price on carbon by the Australian Government."
The terms of reference required the commission to set a price for two years. Instead, its draft price direction is for only 12 months.
ACT Opposition Leader Zed Seselja said in a statement that he was “very concerned about the Canberrans who will cop this massive cost of living hit from the Labor Government”.
“Today's hit comes her after government has already doubled rates in many suburbs, will add $225 to bills to pay for the solar feed-in tariff, and have tripled water bills, with more increases to come due to their inability to manage the Cotter Dam,” he said.
“If it weren't for the Labor/Green's massive carbon tax, Canberrans' electricity bills would only have increased by $55. Instead, they're being slugged with a $189 carbon tax component.”
Mr Corbell said about 80 per cent of Canberra households would receive carbon tax compensation from the Commonwealth and that would help cushion them from the price increase.
Canberra householdeers would receive an average of $600 a year from the federal government and the territory government would give low-income households $266 to help them with their electricity costs.
An energy efficiency bill being debated in the Assembly would also help to reduce electricity bills by about $300 before 2015 by helping people to replace old inefficient appliances and install measures such as insulation and sealing.