Kelvin Thomson response to Herald Sun Article on Power Costs
The Executive Director of the Energy Retailers Association, Mr Cameron O'Reilly, is out of touch with everyday working and fixed income Australians if he thinks electricity price rises in the order of 20.3% for a kilowatt-hour are justifiable. Melbourne and Brisbane suffered the highest inflation of the capital cities last year, as a result of rises like this. Over the past 10 years electricity prices have almost doubled across Australia’s eight capital cities, with Melbourne’s prices having risen by over 50% in real terms – 52%.
Mr O’Reilly must explain why consumers are being asked to fork out more money for a basic necessity?
I think it’s high time pensioners and other household electricity consumers got some relief from ever rising electricity prices. I think regulatory authorities should limit electricity price rises for household consumers to the percentage amount by which pensions rise. This would give pensioners and fixed-income earners some badly needed respite.
Kelvin Thomson MP
Federal member for Wills
Thursday 27th January 2011
Renewable energy is expensive to produce. For Victoria to have 20% renewable energy by 2020, the amount of renewable energy infrastructure needed must outstrip population growth. Another reason for increasing utility prices is dis-economy of scale. Supplying commodities for communities becomes cheaper in bulk, but once population size increase beyond optimum levels and we need more infrastructure and inputs, we end up with increasing prices. We either reduce our living standards or accept increasing prices if we are to continue towards Melbourne@ 5 million and beyond.
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