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

SUV passenger attacks pedestrian in city assault

Police Remembrance Day march to Brown's Park in North Ipswich on Thursday.

The assault is alleged to have occurred at about 10am in Ipswich

This week's community billboard

Learn woodworking and crafting with the Ipswich Woodcrafts Club.

A daily guide to what's on in Ipswich over the next seven days

Local Partners

Workmates honour crash victim with tribute

UPDATE: Tanya Lyell is being remembered as a young mother dedicated to her family and work as the town she called home mourns its loss.

This week's community billboard

Learn woodworking and crafting with the Ipswich Woodcrafts Club.

A daily guide to what's on in Ipswich over the next seven days

Community garden set for Palmwoods

Kay Nixon at the Palmwoods Community Gardens will be hosting a launch day and inviting the ecommunity to come along and sign up.

Parcel of land to supply sustainable gardening for community

Things to do this week

Dragon play Ipswich Civic Centre on Friday October 28

What's on in Ipswich

Kristie doesn't mind being the third wheel in Survivor final

Kristie Bennett in a scene from Australian Survivor.

SOLO player will take on Survivor's power couple Lee and El tonight.

Scary hoping Posh and Sporty will re-join The Spice Girls

Mel B

Mel B hoping Victoria Beckham, Mel C will re-join The Spice Girls

REVIEW: Michael McIntyre has Brisbane in stitches

Michael McIntyre in a scene from his TV series Michael McIntyre's Comedy Roadshow.

BRITISH comedian is in the country on his Happy and Glorious Tour.

Cliff Richard doesn't need Rod Stewart's help with legal bills

Sir Cliff Richard

"'Don't worry, I'm loaded. I won't keep you to it.' "

Bindi Irwin named in MAXIM HOT 100 list

Wildlife Warrior named among Australia's most beautiful women

Look at me! Kath and Kim home up for sale

Kath and Kim from the iconic Aussie TV series.

'Crack open the Baileys and grab a box of BBQ Shapes'

How to fit 100,000 new homes on the Coast

Property, real estate, housing, suburb,  August 2016

Fitting 2m extra people in south-east Qld in 25 years a balance

Hinterland horse stud passed in for $8.25 million

UNREAL: This Maleny estate is incredible.

12-bedroom hinterland horse stud still available

Hit songwriter's Noosa mansion on market

SPECIAL PLACE: The Cintamani estate is going to tender, marketed by Tom Offermann Real Estate.

Is this Queensland's best property?

Kiwi siblings snap up Dotcom mansion for $32.5m

The new toy company owners of the Coatesville mansion want replace any controversy with positivity and fun. Photo / Barfoot and Thompson

The trio paid $32.5 million for the property in June

New $200 million development will create 580 jobs

Cassie And Josh with baby Alfie and daughter Andee. They have bought at new Lennox Head development Epiq.

Majority of new positions will be given to Northern Rivers locals