Electricity pain on way

Hazelwood closure key reason for hike in energy prices

ELECTRICITY bills in Victoria are expected to soar 16 per cent next year, and the closure of Hazelwood power station is being blamed for rising costs.

The shutdown of coal-fired power stations has led to a predicted 48 per cent increase in wholesale power costs.

But a report from the Australian Energy Market Commission, to be released today, suggests next year’s price hikes will be wiped out in 2019 and 2020.

The AEMC report said wholesale costs, which make up about a third of the average bill, would soar 48 per cent next year, then fall 18 per cent in 2019 and almost 30 per cent in 2020 as wind and solar generation eased pressure.

Prices for Victorians are expected to fall 6.6 per cent in 2019 and 9.7 per cent in 2020.

Environmental policy costs, including those of several state energy schemes, which make up about 6 per cent of the average bill, are expected to jump 10 per cent next year.

Big providers Origin, Energy Australia and AGL have said they will raise prices by 10 to 15 per cent next year.

AEMC chairman John Pierce said investment in new energy generation was needed to stop the vol- atile price “roller-coaster”.

Mr Pierce urged the states to work together on the Federal Government’s national energy guarantee, which he said “can work in the longterm interests of consumers and keep the lights on as the energy sector continues to restructure”.

The Government is bolstering its online comparison tool Energy Made Easy, which allows consumers to upload power bills to try to find better deals.

Energy Minister Josh Fry- denberg said new rules would stop retailers promoting “discounted” offers that were more expensive than standard rates.

“(It) will provide consumers with the confidence that a discount is exactly that — a discount,” Mr Frydenberg said.

The AEMC report found 90 per cent of Victorian homes, on market offers, paid an average of $1105 this year. The rest, on standing offers, paid $1345 without GST, and could have saved up to 23 per cent with a market deal.

“Big providers Origin, Energy Australia and AGL have said they will raise prices by 10 to 15 per cent next year.”