Electricity Prices – The REAL threat to your family budget
Australia has local mines, extracting local coal, producing electricity locally! And yet Base load electricity prices have MORE THAN DOUBLED in the last 18months in Australia, and the prices we pay for our electricity rank us 6th on the list of most expensive electricity prices in the world.
The Australian Energy Market Commission says that there are three major factors contributing to the astronomical price of electricity in Australia
1. Supply vs demand. (making up close to 40% of the cost of your bill)
Wholesale and retail prices for a MW/hr are affected in a big way by supply and demand, and Australians use A LOT of electricity. The demand is so great, and supply limited such that we are set to experiences power outages THIS SUMMER. A bitter pill to swallow when our bills keep rising.
You may have heard the news lately reporting on the governments negotiation with energy provider AGL to keep LIDDELL power station open until 2027, the result of the Turnbull government understanding the supply & demand challenge.2.
2. Cost of infrastructure (making up around 50% of the cost of your bill)
When talking infrastructure in the electricity supply game, we are mainly talking the power poles and the electricity transmission wires. According to an article by the Sydney Morning Herald published on June 3 2015, due to a long period of government over investment in electricity network infrastructure, the cost to transport electricity around the grid (to your home!) in NSW is DOUBLE that of Victoria
3. Cost implication of environmental policies (making up around 10% of your bill)
These government imposed policies making up 10 % of your electricity account are the likes of renewable energy targets, energy efficiency schemes and solar system subsidies and feed in tariffs. Another worth mentioning is the carbon tax, a repealed piece of legislation, but are we still paying for it? maybe we could write another article about this one. Where the government introduces a policy, one that will have a cost implication, the money comes from somewhere.
WHAT CAN YOU DO TO MANAGE YOUR ELECTRICITY BILL?
There are lots of ways to reduce your power consumption, improve energy efficiency and stop wasting money on wasted power. These include:
- Turn all off lights in your home when they are not needed.
- Replace your lighting with energy efficient lighting.
- Turn off appliance at the power source. Standby power consumption, the power being used when appliances are plugged in but not actually doing anything, accounts for up to 10% of your bill.
- St your thermostat
- Invest in insulation for your roof
- Close off sections of your home when heating and cooling. If you’re not using the study, close the door and confine your heating and cooling to areas you are in.
- Check your fridge. This is one of the most expensive appliance you have, and making sure it is running as efficiently as possible will save you money. Check the seals are in good order, and set the temp to between 4 and 5 degrees Celsius.
- Compare electricity retailers, and find the best deal!
- Consider solar hot water systems, to replace your storage hot water unit
These are simple things that add up to significant savings when employed in conjunction with each other. And, let’s face it, electricity prices are on the rise, the family budget is as strained as ever, and the money you could save is much better off in your pocket than that of the electricity retailers.
You can also contact an electrician (like us!) and have them do an audit of your home for energy efficiency, ask them questions like:
- What type of meter do I have and how does it affect what I pay?
- If I make the switch to energy efficient lighting, how much will this save me in electricity?
- How long would it take to save the cost of the installation of energy efficient lighting, based on electricity savings?
- Is my Hot Water System running efficiently?
- Is my fridge running efficiently?
- Is there anything else I can do to save energy?
Like Central Tablelands Fire and Electrical, there are other reputable electricians out there that offer FREE IN HOME ENERGY EFFICIENCY AUDITS for your home.
It is very unlikely that cost of electricity will drop in the near future, especially with pressure on finding renewable energy options continuing to gain momentum (YAY renewable energy…BOOO prices rises!). So jump on the energy saving band wagon, implement some of the easy measures listed above and start saving today!