Electricity prices set to rise
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Western Power is seeking tariff increases, which will put pressure on electricity prices. (user submitted: Peter Driussi)
West Australians are expected to be hit with a bigger than expected increase in their electricity bills with Western Power asking the regulator for approval to increase its tariffs by 40 per cent next year.
Western Power's Doug Aberle says the organisation also wants increases in the network tariff of 30 per cent for the following two years.
He says the price hike is necessary because Western Power is spending record amounts on electricity network due to the state's strong population growth and cost pressures because of higher commodity prices and labor.
Mr Aberle concedes there will be flow on effects for electricity generators and for Synergy customers.
"Well the Government would have a choice about what it does in terms of setting or limiting retail tariffs and obviously there would be upward pressure on Synergy if our tariff goes up just as there's upward pressure if the charges for energy go up," he said.
"The choice the Government then makes is how much of that flows through."
Higher bills
The Minister for Energy, Peter Collier, says the request by Western Power to increase its tariffs is likely to mean even higher electricity bills for customers.
In April, the former Government announced that electricity prices would rise by ten percent.
Mr Collier says it's inevitable that prices to customers will rise further, but it is too early for him to say by how much.
"It puts added pressure in terms of retail pricing for electricity at this stage," he said.
"I can't say what those prices will be, or what those increases will be. What I will say however is that it does show that there has been a lack of forward thinking or forward planning in terms of the energy needs of Western Australians by the former government."
