Electricity costs expected to rise 36 percent

Electricity prices are expected to rise by up to 36 percent over the next three years, as electricity suppliers pass on infrastructure improvement costs to consumers, the ABC reported.

Mineral for Mineral Resources and Energy, Tom Koutsantonis, told 891 Breakfast the price rises were out of the State Government’s control.

"In a privatised system, when private companies are spending money on infrastructure, they work within a regulated framework that was established when the assets were privatised, and they charge us when they upgrade their assets."

Mr Koutsantonis said it was frustrating because the state used to own the assets, but the system needs to be upgraded to meet modern demands.

"The most important thing we can do is to try and encourage as much investment as we possibly can to make sure we have a reliable supply, and the more reliable supply we have, eventually, the prices will come down."

To read the full article, click here.

The Utility Show Australasia 2012 is Australia’s premier strategic utility event.

The Utility Show Australia conference is about energy revenue and customer management for Australia’s electricity, gas and water retailers. For more information, click here.