The Department of Climate Change calculates green energy will add 3 per cent to retail power prices nationally by 2020, at a cost to the economy of $177 million each year.
But the price impact will vary between states: NSW power bills will rise 5 per cent, with 4 per cent increases in Queensland and Victoria, 3 per cent in the Northern Territory and 2 per cent in Tasmania and South Australia. Power bills would reduce by 3 per cent in Western Australia.
The department’s analysis predicts that retail electricity prices for Australia will climb a further 3.6 per cent between 2021 and 2030.
Under legislation passed in June, power utilities will be forced to buy 20 per cent of their electricity from renewable sources, such as wind, solar and wave technologies, by 2020. The department estimates that power utilities will spend $16 billion on renewable energy in the next 20 years.
The companies’ costs of switching from cheaper coal-fired electricity to newer technologies will be passed on to households and business customers. Power industry consultant Port Jackson Partners has calculated electricity costs for businesses in some states could double by 2015.
Residential power prices rose 12.4 per cent in the past 12 months, four times the inflation rate. The Consumer Utility Advocacy Centre yesterday said the government should take rising power prices into account when setting payment rates for pensions and benefits.
