A SAVAGE increase in the price of electricity could force some struggling locals to throw out their air-conditioners or abandon electricity all together, according to local charity organisations and pensioner groups.
The claims come after the Independent Pricing and Regulatory Tribunal (IPART) last week paved the way for a 13 per cent hike in Country Energy bills as of July 1 – a rise that will amount to 64 per cent in three years if the Government’s planned carbon pollution reduction scheme is introduced.
With many of his members already buckling under the pressure of price rises in groceries and other necessities, Griffith Pensioners’ and Superannuants’ Association president Peter Katsoolis said the latest news was a “bitter blow”.
“I’m serious when I say many will have to severely cut back on electricity or get rid of it completely,” Mr Katsoolis said.
“One fella has told me if it goes up that much he’ll be buying a one-man tent and some candles.
“People will be turning lights off and fans off because they’re so afraid of what the power bill might be.
“And you have to remember, it will force everything up. Companies will be paying more for electricity so they’ll put up the prices of what they produce.”
Mr Katsoolis said the utilities rebate would be negated because it was pegged to inflation, which is far lower than the planned power price hikes.
Local Salvation Army captain Craig Smith said his organisation was bracing for an influx of new customers.
“People are already struggling without this,” Mr Smith said.
“Many can’t afford to pay electricity bills as it is and it’s hardly gone up compared to how it’s going to.
“People on benefits just can’t afford it and where are they going to turn?”
Country Energy prices are set to increase at a higher rate than its competitors Energy Australia and Integral Energy because of its relatively larger infrastructure costs.
If the CPRS doesn’t pass the upper house, the electricity rises will amount to about 42 per cent over three years.
Based on Country Energy’s own calculations, a household which uses 6000 kilowatts of power a year will be paying $918 per annum more in 2013 if the CPRS passes and $601 if it doesn’t.