EVOENERGY is proposing a “substantial increase” to electricity prices in the ACT during the 2021-22 financial year, blaming the suggested jump on ACT government renewable policies and taxes.
Published by the Australian Energy Regulator today (April 6), Evoenergy’s proposed increase will see the bill of an average residential customer – consuming 7500 kWh per annum on the residential basic tariff – increase by about 36 per cent, which would amount to about $260 more per year (excluding GST).
For an average low voltage commercial customer, consuming 30,000 kWh per annum on the general network tariff, the proposed increase will see them paying 42 per cent more, amounting to about $1760 more per year (also excluding GST).
Evoenergy CEO John Knox said the sustained decrease in wholesale electricity prices for the past 12 months has been the driving factor behind the increase.
He said the increase is predominantly driven by a 133 per cent rise in the jurisdictional charge resulting from the ACT government’s 100 per cent renewable energy target.
“What we’ve seen over the past year is a significant drop in wholesale electricity prices which has increased the payments Evoenergy has had to make under the scheme,” he said.
“This has resulted in a tripling of the funds Evoenergy requires to make large-scale feed-in tariff payments to generators, from around $42m in the current financial year to $127m in 2021–22.”
Mr Knox said he understood that passing through any increase is difficult for the ACT community but the significant jurisdictional charge increase, combined with smaller transmission and distribution charge increases, is expected to result in an average network increase of around 41 per cent higher than 2020–21.
A decision for approval is expected to be made in May with any new pricing coming into effect on July 1.
Canberra Liberals Leader Elizabeth Lee has since labelled the price proposal a broken promise from the Labor-Greens government, saying: “Last year the Chief Minister, [Andrew Barr], and the leader of the Greens, [Shane Rattenbury] promised Canberrans that they would see cheaper electricity costs on their bills due to the ACT government’s investment in renewable energy.”
“The Labor-Greens Government said Canberrans would see a decrease of about $43 on the annual electricity bill of the average ACT household for 2020-21. We now find out prices will rise on average $5.50 a week; almost $300 per year.”