The independent Pricing and Regulatory Tribunal (IPART) of New South Wales has handed down its final determination on the average prices that electricity retailers in the state can charge, authorising an average 18 per cent increase across the state.

 

The tribunal found that flow on costs from network maintenance costs and the introduction of the carbon tax were major factors in the increase. The final decision is higher than the preliminary 16 per cent increase outlined in the draft decision in April.

 

The average price increases will vary for customers of the 3 regulated electricity retailers as follows:

  • 20.6% for EnergyAustralia customers, which translates to an extra $7.00 per week ($364 per annum) on an average residential customer bill, and $9.07 per week ($472 per annum) on average for its small business customers
  • 11.8% for Integral Energy customers, which translates to an extra $4.00 per week ($208 per annum) on an average residential customer bill, and $5.19 per week ($270 per annum) on average for its small business customers
  • 19.7% for Country Energy customers, which translates to an extra $8.21 per week ($427 per annum) on an average residential customer bill, and $10.67 per week ($555 per annum) on average for its small business customers.

 

 

IPART Chairman, Dr Peter Boxall said IPART is concerned about ongoing cost increases and has outlined a number of recommendations aimed at improving the future affordability of electricity.

 

“We would like to ensure that the electricity industry works for the long term interests of customers. There are aspects of the National Electricity Rules and the National Electricity Law that could be changed to reduce pressure on prices and to make sure that expenditure on the electricity network is efficient. We’ve also outlined some areas around reliability standards, green schemes, and subsidies that could be reviewed to limit future price increases,” Dr Boxall said.

 

IPART found that the carbon price accounts for an increase to treail prices by between 6 to 9 per cent.