Australia faces energy bill increases up to nine percent

Many Australians are facing higher energy bills this year, with increases expected to reach up to nine percent. A report from the Institute for Energy Economics and Financial Analysis (IEEFA) explains why. The main reason for these price hikes is the rising cost of gas. When gas prices go up, electricity costs follow suit. Additionally, older coal-fired power plants often experience outages. When this happens, more expensive gas-powered plants are used to supply electricity, which drives the wholesale prices higher. Johanna Bowyer, the lead analyst at IEEFA, highlighted that relying on aging coal and expensive gas plants is problematic. While renewable energy is helping to lower prices, the dependence on older technology continues to raise costs for consumers. Another factor affecting energy bills is the increase in network costs over recent years. Bowyer mentioned that these costs could potentially be lowered by addressing large profits in the electricity network and reducing peak demand. Smart devices, like air conditioners, could help manage demand more efficiently. Upgrading appliances and adding solar panels could also help households save on their electricity bills. Bowyer encouraged individuals and businesses to invest in energy-efficient technologies to significantly reduce their energy use and costs.