Finkel Recommendations Will Push Up Power Bills By 20 Percent

A 20 percent price hike on electricity is set to take place if the Turnbull government decides to adopt recommendations from the latest Finkel report.

Prices are expected to surge from 26 cents to 46 cents per kilowatt, if the clean energy target, set out by the report is implemented.

The recommendations outlined in the report are expected to cost the average household an extra $6.15 per week.

However, it has been reported one-third of the Coalition have misgivings about the new target, with many others not expressing a firm view.

Australia Chief Scientist Alan Finkel said the report aims to deliver four key benefits for the electricity system: future reliability, increased security, rewarding consumers and lowering emissions.

“Our electricity system is entering an era where it must deal with changing priorities and evolving technologies,” Dr Finkel said in a statement.

“If the world around us is changing, we have to change with it.

“More of the same is not an option, we need to aim higher.”

This nation-wide price hike can’t come at a worse time for WA, with Treasurer Ben Wyatt previously saying power is expected to increase by seven percent in 2017-2018, regardless of whether the national recommendations are implemented.

“The 16-17 budget has seven percent increases in power bills, and in light of the fact that from memory you decreased that by one percent, which was about a $19 million impact on the finances for that particular year,” Mr Wyatt said at press conference in April this year,” he said.

“Now, everybody needs to understand for every dollar we spend, it is borrowed.”

“And now more and more is going to be borrowed off-shore.”

“So, the budget is predicated on seven percent, I wouldn’t expect anything less than seven percent.”

Mr Turnbull is expected to make a decision in the next six weeks.

Photo Courtesy: Wikipedia

Tagged under

Leave a Reply

Your email address will not be published. Required fields are marked *