Energy price hike in NSW to jump up electricity bills
Households will be hit with an increased electricity bill due to a price surge in wholesale energy costs.
Electricity retailers have begun informing customers about these added costs, as coal and gas costs are on a continuous ascend.
In the initial three months of the year, national electricity was at $87 per megawatt-hour on an average which is up by 141% since March of last year.
Wholesale prices have increased in most regions of Australia, but NSW could witness a hike up to 130%.
Energy shortages in winter have brought a huge price hike in coal and oil costs. Amidst the Ukraine-Russia conflict, global fossil fuel prices have shot up further. As a ripple effect, the coal price surge has impacted power stations that are now demanding a significantly higher price to cover costs.
Due to outages, thermal generator availability was considerably reduced, resulting in the lowest generation of black coal electricity at the quarterly level in the last 2 decades.
Although gas-fired power stations produce less total electricity, they have a significant impact on wholesale electricity pricing.
The Australian energy regulator is expected to release a default market offer, that will establish the price a retailer can quote to its customers. This will be a government price ceiling that will help ensure that the consumers are not taken advantage of.
Origin, EnergyAustralia, and AGL, the three largest retailers, are likely to announce their price hikes in June. This hike is somewhere estimated to be around 15%. A hike of 15% would increase the energy spending by $200 for an average family.