- Canberrans electricity bills are expected to decrease over the next year.
- Fortunately, because of long-term planning and contract to generate electricity through renewables, the Canberra region has decreased their wholesale electric prices.
- Several economists have recommended shifting some portions of exports to the domestic market. This way, Aussies can receive some relaxation until the problem of power generation is not solved.
Electricity prices are skyrocketing in Australia. There are a couple of reasons behind the massive increase in power bills, such as the Russian invasion, lasting effects of La Nina, crunch in domestic gas supply, and most importantly, years of negligence towards shifting to renewable sources for generating power.
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Power bills are around five times more than the previous year’s average cost in most cities. Following this massive increase in the electricity cost, several power retailers are on the verge of collapsing. Businesses cannot determine how to sustain themselves in the current market scenario. The rise in power bills is causing a tremendous load on the monthly disposable income of Aussies.
However, recently it has been observed that one city - Canberra, doesn’t fall into the pit hole of skyrocketing electricity bills. On the contrary to mounting high prices for other Aussies, Canberrans electricity bills are expected to decrease over the next year.
Besides, some of the power bills that other Aussies pay may now be given to Canberrans. So, the ACT is the only jurisdiction across the electricity market in the country where bills are expected to decline in 2022 and 23.
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But why is this payoff and decline in electricity prices happening only in one particular region while the rest of the country is shattered by rising monthly electricity bills? Let’s see it in-depth.
In 2020, the ACT committed to reaching 100% power generation through renewable sources, and the region was able to achieve the said goal before the pre-decided timeline. So, according to recent reports, an average ACT customer using 25,000 kilowatt-hours of power would see a decline of around AU$88 in their annual bills, whilst bills rise fast across the border in NSW.
Fortunately, because of the long-term planning and contract to generate electricity through renewables, the Canberra region has decreased their wholesale electric prices.
So, what should other regions do to ease the pressure of rising electricity bills?
The only solution here is to direct the power generation methods to renewable energy sources. Initially, the cost may be higher; however, with long term implementation, the average price of electricity would decline.
Especially looking at the present world dynamics, moving away from coal for energy generation is recommended. Additionally, several economists have recommended shifting some portions of exports to the domestic market. This way, Aussies can receive some relaxation until the problem of power generation is not solved in the long run.
With the newly elected Labor government, it would be interesting to see how new policies and rules will be framed for the energy sector. Expectations are such that Australia will soon take a significant step towards green energy. However, it is yet to be seen how the real-life implementation occurs.