Business

91% increase in electricity prices in five years

THE prices Australians paid for electricity rose a massive 91% in the past five years, a report from the Australian Energy Regulator has revealed.

In its State of the Energy Market report, the AER wrote that the average power price increase across the nation in the last five years was 91%.

And while overinvestment in electricity transmission networks, or gold-plating, was an issue, the regulator wrote that lax energy market rules were mostly to blame.

The report revealed the energy market rules, put in place in 2006, had limited the ability of the AER to amend revenue proposals put forward by the energy networks, leading to the cost increases.

"While the rules reflected policy concerns at the time about the adequacy of network investment, they led to unnecessarily high revenue streams for network businesses," the report reads.

It also showed other cost pressures in the electricity market arose from stricter reliability controls at state government levels, which were a secondary factor in the price rises.

In combination, the national state regulations led to the 91% price rises for Australian households, as well as massive revenue increases for the network businesses.

While the market report shows the changes in the past year, and highlights the cost increases, there is already much reform under way to improve the system.

This includes wide-ranging proposals under the Federal Government's Energy White Paper, and the Australian Energy Market Commission's Power of Choice review, both completed in recent months.

While the two reform proposals are unlikely to result in any price falls for the average retail consumer in the next financial year, they could result in longer term reforms to drive costs down.

Topics:  electricity prices




Where the sinkhole water came from

The Basin Pocket sinkhole was drained into  gully.

The lab results are in

Boomtime for eastern suburbs of Ipswich

INFORMED: Councillor Andrew Antoniolli says a new reporting system will allow residents to track population and housing growth.

Ipswich population set to hit 200,000 by early next year.

Court hears evidence of drug deal that led to stabbing

CRIME SCENE: Forensic police officers investigate a fatal stabbing on Cobalt St in Carole Park.

Witness tells court stabbing victim wanted drug money to pay rent

Latest deals and offers

Kooza takes circus-goers back to Cirque Du Soleil's roots

The high wire act as featured in Cirque Du Soleil's Kooza.

NEW show puts the skills of the performers front and centre.

Branson "amazed" he's still alive after cycling crash

Branson saw "his life flash before my eyes" during a bike crash

What's on this weekend

LIFE'S A BREEZE: Ipswich Art Gallery's latest children's exhibition, Wind Tubes.

Things to do in Ipswich

LISTEN: Inner-city venues face local Ipswich competition

DINKUS

Charlie Pisasale pushes for local youth to return to Ipswich bars

Reality TV show "turned our special day into a joke"

UNHAPPY: Maryborough couple Emma and Steven Dilliway who star on Australia's Cheapest Wedding and are not happy with the outcome.

Reality television helped turn this wedding into an internet joke

John Krasinski has better sex now he's in good shape

John Krasinski says there's at least one good reason to get jacked

REVEALED: Pat Rafter's $18m Coast house on the market

Check out the photos of the Coast's most expensive property for sale

The "correction we had to have" in Gladstone's rentals

UPWARD MARCH: The rental vacancy rate in Gladstone has improved for the first time in more than a year, providing a confidence boost in the market.

Vacancy rates improve with signs that things are getting betterF

ISLAND FOR SALE: Cheap Fraser Coast island drops price again

Suna Island in the Great Sandy Strait will be auctioned by Ray White Hervey Bay on Saturday morning.

This is the cheapest island you will find for sale in Australia

How a family home can fit on a 250sq m block

This is what you can build on 250m2.

Here's the floor plan of a home built on 250sq m

$100m plan for Curtis Island 'world class' luxury resort

$100 million resort: Top views at Turtle Street at Curtis Island.

"At the moment we think it meets all the town planning approvals.”

Noosa mayor on "red alert" over planning court decision

Mayor Tony Wellington hands down his first budget.

Mayor upset at lack of say about look and feel of Noosa