The Power Industry Suggests that We All Start Cutting our Electricity use
The electricity industry has called on households to start cutting their power use now to get ready for emissions trading which is forecast to add just over $3 a week to household power bills when it starts in two years’ time.
It was sensible to start preparing for higher prices in advance, Brad Page, chief executive of industry body the Energy Supply Association of Australia, said.
There was a “huge amount” people could do now to slash their power bills”, he said.
Mr Page recommended switching to energy efficient lights, installing insulation, and sealing around doors as well as choosing energy efficient appliances when these need to be replaced.
The average household power bill is presently $1,020 a year. The federal government forecasts emissions trading will push up the cost of electricity by about 16 per cent, or an increase of $163 a year, in 2010.
The industry is calling for a fundamental change in the way power prices are set, to allow the full cost of emissions trading to flow through to households. At present State governments set power prices, which tends to keep them low. State governments have agreed to stop setting prices when there is effective competition in the market, but there are concerns deregulation is progressing too slowly.
“I think we have to change the system, we’ve got to go and rely on competition and stop trying to regulate a price,” Mr Page said. Without a true flow on effect there is less incentive to reduce household use. He went on to state that by world standards Australia has very low electricity prices, which meant people take electricity for granted, and are less conscious of the need to use it wisely.
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