Power plan targets prices

06 Aug, 2018 10:07 AM
Comments
0
 
Farm groups have formed a coalition to lobby for power price reform and are supporting the NEG and the ACCC.
Since 2012, estimates say the average electricity costs on a dairy farm have risen 48 per cent ...
Farm groups have formed a coalition to lobby for power price reform and are supporting the NEG and the ACCC.

RURAL and regional businesses have welcomed a 56-point plan released by the Australian Competition & Consumer Commission to wind back costly retail and energy network regimes, which have caused power prices to skyrocket in the past decade.

A coalition of primary industry groups made a joint submission to the ACCC’s inquiry highlighting the impact on farmers.

Since 2012, estimates say the average electricity costs on a dairy farm have risen 48 per cent across the country, with power accounting for a significant proportion of a dairy shed cost – varying from $17,000 to $40,000 on average a year.

Adelaide Hills brussels sprout growers the Cranwell family saw the cost of their electricity contract shoot up 126pc in 2017 when it came up for renewal – rising from $50,000 to $113,000.

PV Water supplies 250 irrigating canegrowers in Mackay, Qld.

Their electricity costs rose 52pc between 2009 and 2013, driving down water demand by 20pc.

New tariffs are forecast to increase prices by more than 100pc.

West Corurgan Private Irrigation, Berrigan, NSW, is a private irrigation scheme for 300 properties. Its pump station cost $284,000 in 2016-17.

That price is set to rise 40pc, or $114,000, in the next financial year.

Meanwhile, household electricity prices have risen 63pc in the past decade.

Small enterprises and industrial consumers have seen prices double, or even triple where there is limited competition for tenders.

​A whopping 48pc of the average power bill comes from network charges, which have been inflated as the ‘poles and wires’ asset bases of electricity networks grew 400pc in the past 15 years, greatly exceeding actual demand.

The ACCC says its reforms would deliver households up to 25pc savings ($290-$415 a year), while more than 2 million small to medium businesses could save an average 24pc on power bills and larger commercial and industrial customers could see costs decrease an average 26pc.

The report calls for public investment in new power generation, with the technology to be determined by the market, to support new supply and to drive down prices.

Other elements of the ACCC’s plan are aimed at creating more transparent retail and energy network regimes.

“The National Electricity Market is largely broken and needs to be reset,” ACCC chairman Rod Sims said.

“Previous approaches to policy, regulatory design and competition in this sector over at least the past decade have resulted in a serious electricity affordability problem for consumers and businesses.”

FarmOnline

POST A COMMENT


Screen name *
Email address *
Remember me?
Comment *
 
A new definition of 'genetically modified' currently awaiting parliamentary approval could see a swathe of new grasses on the market within three years.
13 Nov 18 A new definition of "genetically modified" currently awaiting parliamentary approval could see a swathe of new...
A person normally breathes about 25,000 times a day, with the lungs taking in oxygen from the air and delivering it to the bloodstream.02 Nov 18 A person normally breathes about 25,000 times a day, with the lungs taking in oxygen from the air and delivering it...
light grey arrow
Olivia - what you fail to consider is that animals fed the crops you speak of aren't evolved to
light grey arrow
If that’s what they think the milk volume drop will be they are in for one hell of a shock. 200
light grey arrow
A well planned vegan diet is certainly not nutrient deficient. But aside from that, the entire
Amidst rising farm costs, Dairy Australia has developed a range of energy information resources to assist farmers to make smarter use of energy to reduce power bills.
13 Nov 18 Amidst rising farm costs, Dairy Australia has developed a range of energy information resources to assist farmers to...
Accurate and up-to-date paperwork is crucial for all dairy farmers. But as a farm manager, Allen Hook says the ability to keep precise records is what keeps him in a job.12 Nov 18 Accurate and up-to-date paperwork is crucial for all dairy farmers. But as a farm manager, Allen Hook says the...
Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition opportunities.25 Sep 16 Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition...
Monopoly market may confront cropping sector under mega-merger proposal.22 Sep 16 Monopoly market may confront cropping sector under mega-merger proposal.