December 2009- Australian consumer electricity update
This update is the first of a series we intend to publish every quarter, at the end of each Australian season - Spring, Summer, Autumn, and Winter.
Our aim is to collate and analyse data about electricity prices and usage based on publicly available information and our own data about the maximum and minimum prices consumers are paying for electricity.
Introduction
This update is the first of a series we intend to publish every quarter, at the end of each Australian season - Spring, Summer, Autumn, and Winter. Our aim is to collate and analyse data about electricity prices and usage based on publicly available information and our own data about the maximum and minimum prices consumers are paying for electricity.
If there is something that you feel is missing, or you would like more detail on a specific issue or a media comment from our CEO Ben Freund, please contact Anne Wickham at Boxing Clever on 0419 185 664 or awickham@boxingclever.net.au.
Current Hot Issues
1/ 1 January price increases in Victoria:
- Victorians will receive another hefty price increase on 1 January 2010, with the default rate for electricity rising between 17.8% and 27.7% depending on where consumers live. We are waiting for retailers to confirm price offers and discounts that will be available to savvy shoppers. If you contact us over the Christmas break we’d be happy to provide details of the options available.
2/ A look behind price increases announced in NSW and QLD
- While debate around the impact of the Federal Government’s Carbon Pollution Reduction Scheme (CPRS) has been the subject of heated discussion, it has masked what is a potentially bigger issue in the short term, that is, the rising cost of providing a reliable supply of electricity.
- In NSW last week IPART released a draft determination recommending price increases ranging from 44%-62% between July 2010 and 2013 for all NSW consumers. A look behind the numbers shows that “investment in infrastructure, (to) … improve network security and reliability of supply in line with the new licence conditions imposed by the NSW Government” accounts for price increases of 31% for EnergyAustralia customers, 16% of Integral Energy customers and 35% for Country Energy customers. (Source: IPART media release 15 December 2009.)
- Also last week, the Queensland Competition Authority recommended electricity price rises of 13.8 per cent from July 1 for a year.
- We believe that these price rises are only the beginning for customers in NSW and Queensland, who have some serious catching up to do compared to what people are paying in other states. It is our opinion that IPART’s recommended price increases, in particular, fell considerably short of what the industry had been hoping for.
Retail electricity use Winter ‘09 v Spring ‘09
- Across the four states where a choice of electricity provider is available, Queenslanders used the most electricity per head during Spring, and they also enjoyed the lowest default rates.
- Summer can be a real trap for consumers because air conditioners chew through electricity more than any other appliance in the home. Use them with discretion and set thermostats as high as is comfortable.
- Summer is also a good time to make sure that you are not on a default plan and paying maximum rates. Spending five minutes seeing what options are available to you can save households as much as $200-300 a year in many cases.
| State/Territory | Amount used in Winter (Jun-Aug 09) | Amount used in Spring (Sept-Nov 09) | Percentage change |
| NSW/ACT | Total: 20,667.43 GWh
Per capita: 277.38 MWh |
Total: 18790.64 GWh
Per capita: 252.22 MWh |
-9.08 |
| Vic | Total: 13,435.57 GWh
Per capita 247.54 MWh |
Total: 12544.17 GWh
Per capita: 231.14 MWh |
-6.63 |
| QLD | Total: 12,838.74 GWh
Per capita 291.34 MWh |
Total: 13,000.52 GWh
Per capita: 295.01 MWh |
+1.26 |
| SA | Total: 3,471.39 GWh
Per capita: 213.93MWh |
Total: 3,265.90 GWh
Per capita 201.26 MWh |
-5.92 |
References and sources
- Default prices are based on actual published rates charged by electricity suppliers within the 11 network distribution areas in NSW, ACT, Vic, QLD and SA.
- NSW information includes ACT data because it is not separated by the Australian Energy Market Operator (AEMO).
- Average annual bills listed in this document are based on the default rate for electricity multiplied by average consumption of 8MWh per annum and based on an all-day metre.
- Per capita data was calculated using population figures sourced from ABS Publication 3101.0 - Australian Demographic Statistics, June 2009
Referencing information
If you wish to print any of the data provided please reference it as follows: Source: www.goswitch.com.au
About GoSwitch
www.GoSwitch.com.au is the leading price comparison service for electricity and gas. It allows households and businesses to conduct a customised search for the best energy provider for their needs, and to change plans free of charge.
Retail electricity price rises in 2009 (based on default rates)
Victoria
Victoria has borne the brunt of electricity prices rises this year. Four of the most five most expensive default prices are based in Victoria.
| Distribution Network | Region covered | Annual Bill Jan ‘09 | Annual Bill Jan ‘10 | % change this year | Cost ranking |
| Powercor | Central and Western Victoria, Outer Western Melbourne | $1,575.67 | $2,012.08 | 27.70 | 2 |
| CitiPower | Melbourne CBD and Inner Suburbs | $1,421.82 | $1,802.85 | 26.80 | 4 |
| Jemena | North West Melbourne | $1,515.95 | $1,920.09 | 26.67 | 3 |
| United Energy | Melbourne South Eastern Suburbs and Mornington Peninsula | $1,498.71 | $1,796.08 | 19.84 | 5 |
| SP Ausnet | Eastern Victoria | $1,456.52 | $1,715.65 | 17.79 | 8 |
NSW
NSW does not have full deregulation, but nonetheless most consumers do have a choice of plan. NSW consumers will pay up to 62% more for electricity over the three years from July 2010 unless they shop around for a better deal. This is over and above increases already being felt in 2009 of 11%.
| Distribution Network | Region covered | Annual Bill Jan ‘09 | Annual Bill Jan ‘10 | % change this year | Cost ranking |
| Energy Australia | Eastern and Northern Sydney, Newcastle, Central Coast | $1,515.76 | $1,694.39 | 11.78 | 9 |
| Country Energy | Rural NSW | $1,823.22 | $2,020.90 | 10.84 | 1 |
| Integral Energy | Western and Southern Sydney, Wollongong | $1,606.79 | $1,789.92 | 11.40 | 7 |
QLD
The default price for electricity has risen by 15.67% in Queensland this year, but the average household is still only paying about $1,595 per annum compared to as much as $2,020 in some areas of country NSW and Victoria.
| Distribution Network | Region covered | Annual Bill Jan ‘09 | Annual Bill Jan ‘10 | % change this year | Cost ranking |
| Energex | South East Queensland | $1,378.39 | $1,594.43 | 15.67 | =10 |
| Ergon | Regional Queensland | $1,378.39 | $1,594.43 | 15.67 | =10 |
SA
South Australian residents, who are the most frugal electricity users per capita began the year paying the highest rates, but benefited by having the lowest annual increase of all the deregulated states of just 4%.
| Distribution Network | Region covered | Annual Bill Jan ‘09 | Annual Bill Jan ‘10 | % change this year | Cost ranking |
| SA | South Australia | $1,720.72 | $1,790.03 | 4.00 | 6 |
