Fifteen years of alarming energy statisticsThe price of energy has been dramatically climbing for well over 15 years, with no indication of slowing down. A 2013 Australian federal government report demonstrated that prices had risen by 72% for electricity and 54% for gas in 10 years prior to June 2013. In a more recent 2018 report by the Australian Competition and Consumer Commission (ACCC), retail customers in the National Electricity Market are paying 44% more for electricity than just ten years ago.
What are our energy prices made up of?Consumers obviously don’t pay for just the cost of generating the electricity itself. It is in fact four different components that make up a bill:
- The network component is the cost of transporting the electricity, and is the largest contributor to the overall cost of electricity
- The retail component involves servicing and billing customers
- The wholesale component is the cost of actually generating the electricity
- The government policy component includes the cost of governmental environmental schemes.