Alinta Energy says retail electricity prices may increase by more than 35 per cent next year.

Current forecasts and ongoing costs suggest further pressure will be placed on households already struggling with the cost of living, according to Alinta Energy chief executive Jeff Dimery. 

“When we run our modelling for energy pricing next year, using the current market prices, tariffs are going up a minimum 35 per cent,” Mr Dimery said at a recent climate and energy summit.

“Now, maybe, the regulators are going to change the rules on that, I'm not sure.”

Mr Dimery says the cost of transitioning away from fossil fuels in Australia has been immense.

Alinta wants to close its Loy Yang B coal-fired power station in Victoria, which produces 1,000-megawatts of power, and replace it with offshore wind and pumped hydro.

“What cost me $1 billion to acquire is going to cost me $8 billion to replace, so let's talk about that and [someone] explain to me how energy prices still come down,” Mr Dimery told the summit.

He also said that he is concerned about the huge amount of work required to ensure reliable renewable power while the nation transitions away from fossil fuels.

“If you look at all the development that has occurred up to this point - and what needs to happen between now and even 2030 - I get concerned,” Mr Dimery said.

“I get concerned about the $60 billion of development that is required in Queensland. I get concerned about the $20 billion AGL has flagged.”

Energy Australia's chief executive, Mark Collette, gave a similar view. 

“Looking back at the first part of the energy transition over the last 20 years, Australia did pretty well, with up to 30 per cent renewables [with] a couple of significant power station closures,” he said. 

“That was the easy bit. Looking forward, the next bit is hard.”