Proposed Changes to Electricity Pricing Structures
I was chatting to some of my friends last night and the topic of rising electricity prices came up (I know I know … not your usual dinner conversation). My feeling is because the ongoing rise of electricity prices is a highly topical issue at the moment, with many West Australians feeling the pinch. Even if we can afford the price rises, no one likes to pay more for something if it is not justified.
But before I go on … I just want to remind bloggers that this blog post represents my musings around the current state of electricity pricing and use in general …….
So why is the government increasing prices? It is based on the premise that we should be paying the full cost of the energy that we consume (but with concessions where necessary). Currently the State Government estimates a shortfall of $294.1 million (as stated by the Office of Energy). Before prices started rising two years ago, there had been no price rise for residential customers for ten years, even though the cost of generating and providing that electricity had risen.
Like it or not, there is no question that electricity prices will continue to rise, and the way in which the rise is managed will make a difference to everyone depending on circumstances. My feeling is that It is unlikely we will end up with a flat rate for electricity as different pricing structures can help deliver many benefits. Some of the most important potential benefits that we could take advantage of with different pricing structures, in my opinion, are:
Reduction of demand at peak usage times (the ‘peak’ is a large part of what determines Western Power’s need to upgrade or build new infrastructure) and;
Delivering equity objectives such as charging more for usage over and above essential needs;
Embedding concessions to keep the system simpler
Helping transition consumers to the level of participation they will have with the network with the implementation of a Smart Grid
That's just my observation. The Office of Energy in conjunction with WACOSS (WA Council of Social Services) is currently in a period of public consultation on the issue, called the Tariff and Concession Framework Review. You can view the paper under consideration at www.energy.wa.gov.au and you have until July 15th to respond. So if you have an opinion about how this should be managed, it is important that you take the time to get your voice heard. The Government will not be able to fully understand how different options will affect people unless citizens take the opportunity to engage in the consultation period.
They are also considering energy concessions – the objectives of concessions, to what groups they should apply to, and what the most effective way to deliver concessions is.
The group of citizens that I was involved with to submit a response to the Strategic Energy Initiative, were highly supportive of time-of-use tariffs as a way to manage demand – but in conjunction with provision of education and skills training to enable people to change behaviour.
That was our primary opinion – what grabs you the most about the proposed changes? Would be great to start a conversation on this ….



claire