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NewsPower bills still hurting, amid fears they’ll go higher and lack of trust in pollies to fix them
Power bills still hurting, amid fears they’ll go higher and lack of trust in pollies to fix them

Power bills still hurting, amid fears they’ll go higher and lack of trust in pollies to fix them

Hardship has trumped energy efficiency as the most common way to keep power bills affordable this winter, according to the current FiftyUp Club energy poll available here

Asked to choose up to three strategies you’re using to keep bills down, 80% said turning off powerpoints and lights, and 58% are foregoing the heater, even though you’re cold.

“I'm going around my neighbourhood & looking for old wood to burn in my fireplace,” said one member in our forum.

This is compared to 39% who bought energy efficient appliances and 29% each for either buying solar panels or switching suppliers.

Just four per cent claimed they did nothing as they could afford the bills.

The findings are very timely as a legal battle begins in NSW that will have consequences for the entire country in the months to come.

The Australian Competition Tribunal is currently hearing challenges from the NSW state-owned electricity networks to proposed July 1 price cuts, and we'll be campaigning to make your voice heard in the deliberations.

Click here to take our 2-minute survey if you haven’t yet done so

The FiftyUp Club will then put together a submission for the tribunal on behalf of Australians over 50, who tend to be disproportionately impacted by higher power prices.

Very few of us seem to believe the politicians when they say power prices will go down.

Almost 70% feared electricity would rise significantly and 14% hoped for a smaller increase. Only 5% thought prices would be stable and 12% that they might even come down.

There was overwhelming support of 79% for the Australian Energy Regulator's proposal for drastic cost savings to consumers – up to a $300 a year for some households.

Almost 19% said their support  would depend on if there safeguards for workers.

Perhaps most interesting for students of consumer behaviour was much greater trust in the market and competition to contain power prices than the traditional champions of government and regulators.

Some 52% said the market looked after their interests with lower prices and better service ahead of the regulators such as the AER. Federal and state governments got scores of under 10% each.

When it comes to disconnection, a fate which befell nearly 33,000 households in NSW in 2013-14 thanks to unpaid bills, only 1% have actually been cut-off.  But we do wonder how many have had to do what this member has to pay their bills:

“Just can't afford to pay the bills. Spouse is still working at 71 and we still can't make ends meet. Have to frequently ask for extended time on electricity, phone, rates, water rates. Barely enough left for food.”

Originally posted on .

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Power bills still hurting, amid fears they’ll go higher and lack of trust in pollies to fix them

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Greg
Greg from VIC commented:

Electricity is a necessity. Governments know it. The power companies know it also. We must have it. This is why they can and will continue to drive prices up. They know we are hooked (like an addict) and can not be without it. Private enterprise is driven by the profit motive (as it should be). When an essential service is privatised we not only pay the cost of the service but cost plus profit so up goes the price. To make matters worse there are at least three profits in the price chain. The generating company, the wholesaler or distributor and the retailer. When we use less they simply increase the price to offset the volume reduction. When infrastructure needs replacement they levy an additional set of charges to offset that cost. There is only one answer to the problem. Government must exclusively own the power supply and distribution and operate on a cost only recovery basis. 

Ken
Ken from NSW replied to Greg:

You are correct about the profit motivation of privatised operators, (Private companies are only interested in making profits for their Directors who are on outrageous, obscene salaries, and shareholders. ) but Govt. operators are just as bad. Governments take "dividends" out of essential services they own, and because are not so profit driven, they featherbed the employees of those enterprises, often they "gold plate" the infrastructure of the enterprise, and are usually just very bad managers of any enterprise. Really free competition between private operators is probably the system that could provide the lowest costs to consumers, but that is not, never will be, on offer to us. 

Someone
Someone from NSW replied to Ken:

Vote for The Greens, if you want "competition between users", hence very, very cheap utilities and also the "basics", in ones life... 

Ken
Ken from NSW commented:

Alain/Anonymous, it's not easy to understand what you are trying to say, whichever name you use, but I did not write "competition between users", it was "competition between operators", meaning utility providers. Green approved electricity providers could only supply electricity while the wind blows, and/or the sun is shining. Go back to your basket weaving in your cold, dank cave. 

Someone
Someone from NSW replied to Ken:

Are the German "cave men", or would you admit you are like too many of us, Aussies, 'a bit' behind, Ken? http://www.europeanceo.com/business-and-management/germany-breaks-solar-power-records/ 

Ken
Ken from NSW commented:

Solar is in the future, but requires some form of economic power storage, otherwise the fossil fuel powered generators have to keep turning over, to meet peak demand and provide power in the dark. Germany is continuing the move from nuclear power back to coal fired power. Of course, you Watermelon Greens object to Nuclear power, too, so you can take some solace from that being phased out. If the future is really Left Green, I would prefer to be "a bit", in fact, a lot, behind. 

Someone
Someone from NSW replied to Ken:

You are like Jesus Abbott, Ken the cave man, obsolete and a nut shell -useless-... please, read my comments above, Ken the cave man... 

Someone
Someone from NSW commented:

read today's comments at 9.16/9.19/9.21 

Someone
Someone from NSW replied to Ken:

I agree on one point with you, kevin: as far as households are concerned, yes, good (plenty of 'it' and affordable) storage capacity IS the key to the future of solar... 

Warren
Warren from NSW replied to Ken:

100% right Ken. 

Warren
Warren from NSW replied to Ken:

Well said Ken - Greg made some good points, but his conclusion was wrong. The 'gold plating' had a substantial Union involvement. Also unfortunately Governments don't have the money to invest in future energy development, hence they're run down. 

Rae
Rae from NSW commented:

I cut down where ever I can. I turn off lights/appliances at the power point; I swap energy providers frequently to get a better deal & try to buy energy efficient appliances. I'm now using Gas for heating & cooking to not only save money, but having just experienced a week long blackout due to the recent mini cyclone which hit the hunter, at least I'll be able to cook, shower & keep warm! 

eric
eric from WA commented:

living wa 

Denis
Denis from NSW commented:

While ever the electricity providers (particularly Click and Origin) are making massive profits from consumers and charging rates that are not only unrealistic but also excessive and greedy they won't want their "golden goose" killed! 

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