Huge hikes in the electricity prices across the New South Wales area have been suggested by the Independent Pricing and Regulatory Tribunal, over the coming 3 years. The tribunal, in the drafted recommendation, called for a price hike of at least 62% spread over July 2010 to 2013.
The hardest hit would be the country energy customers, who would see their electricity bills jump by an estimated $900 by 2013.
According to IPART's Chief Executive James Cox, the price rise has been recommended due to two reasons. "The important point to note here is almost 90 per cent of the increases are due [an] increase in network charges to pay for higher reliability standards, and also the increase or the introduction to carbon pollution reduction scheme, if indeed it is implemented", he explains.
The two things put together, as per Mr. Cox, will place an increasing upward pressure on the prices of power. The prices, he says, will be adjusted in case the ETS is modified or does not go ahead at all.
The final decision on the recommendation will be made next year.