New power bills will cost more as electricity demand increases
The cost of buying electricity in Australia has risen significantly in the last year, with the cost of electricity rising by an average of $6.40 per kilowatt-hour, according to the Bureau of Statistics (BS).
In a new report released on Monday, the Bureau said the cost for electricity is set to go up by $2.55 per kiloWatt, or 3.5 per cent a year, in 2019.
“The increase in the price of electricity will cause households to choose to buy less electricity,” the report said.
“While the cost increase is smaller for households with the lowest income and lower average energy consumption, households with higher average energy use and higher income are likely to see a cost increase.”
The report also revealed that prices for new homes rose by 1.4 per cent, from $2,900 to $2 and $2 to $3,000 per square metre, in the year to June.
The report said that in the long term, the increase in electricity prices would result in households spending more on energy bills, and in the longer term this will lead to increased electricity consumption.
The electricity market has seen price hikes in recent years, with prices increasing in June for residential and commercial consumers.
The average price of a kilowamp-hour of electricity rose by $6 per kilogram, to $26.90, the highest price increase in two years, according the BIS.
However, there are also many other factors that affect the cost and supply of electricity.
As the number of homes and businesses connected to the electricity grid continues to increase, the price increases for some industries have been a concern.
In 2017, the average cost of running a business was $14.50 per hour, up from $13.60 in 2016.
But, according in the BSS, the total amount of electricity consumed by Australian households has remained steady, at about 28 per cent of the country’s total consumption in 2017, which has led to a lower average cost per kilomyrg of electricity in 2018.
According to the report, the number one reason households are choosing to cut down on electricity usage is because of higher costs of gas and electricity.
The increase for the average electricity bill in 2018 is likely to be in the range of $4 per kilometre, to about $18.
The average electricity cost in 2019 is expected to be $4.80 per kilonewatt hour, which is expected of a 10 per cent increase in 2018, and to $5.20 per kilotewatt hour in 2019, up by 10 per, 10 per and 10 per per per cent respectively.
“As demand increases, the cost per unit of energy consumed will increase.
This will lead households to switch to more efficient energy sources, such as gas and/or electricity,” it said.
BIS energy analysts say the increase will have a negative impact on the efficiency of the electricity supply system.
They also warn that the increased costs could have an adverse impact on Australia’s ability to maintain the integrity of the national electricity market, and will also cause households with lower incomes to see an increase in their energy bills.