Canberra Household Electricity Bills To Rise By $240 Annually Amid 12.75% Cost Hike

The average yearly household bill in Canberra will climb by $240 due to a 12.75% increase in electricity costs, beginning July 1.

This hike is less than the expected increase of 17%, and will be somewhat mitigated for many consumers by a $300 power rebate. For residential customers that consume 6,500kWh of power per year, this corresponds to an average annual increase of $240. Bills for businesses and high-usage clients will rise more sharply, reaching $922 per year for those utilizing 25,000kWh, ABC.net.au.

Canberra is anticipated to keep some of the lowest standing offer power costs in the nation despite the increase.

The ACT government's large-scale feed-in tariff (LFiT) program and increased network costs were blamed for the hike by the Independent Competition and Regulatory Commission.

The cost of this renewable energy-sourcing arrangement is incurred when wholesale market prices drop below the set price that generators have agreed upon. Of the price rise, 8.95% may be attributed to the LFiT.

"The federal government's bill of $300 relief will fully offset the increase in electricity prices for most residential customers and partially offset the increase in electricity prices for small business customers," Independent Competition and Regulatory Commission spokesman Joe Dimasi told CityNews on Thursday.

Senior Commissioner Joe Dimasi says ACT power rates are likely to be among the lowest in the nation. In support of the regulator, Dimasi said that the methodology's goal is "to accurately reflect the costs incurred by efficient retailers and provide a balance between reasonable prices for consumers and competition in the ACT electricity market." He went on to discuss the effects of the LFiT program, saying that "ACT customers received a rebate from the program last year, which shielded them from the significant increases in electricity prices that occurred in other jurisdictions."