The imminent closure of the Hazelwood power station in Victoria could add an extra $78 to eastern household power bills, according to the Australian Energy market Commission (AEMC) as reported by ABC News.
John Pierce, AEMC chairman pointed to the Federal Government’s renewable energy target and the Hazelwood shut down as the reasons for the price hike.
However, the national rise in electricity bills is reduced to $40 on average once new wind farms and changes to the network regulations are included in the equation. The closure of Hazelwood also adds $204 in Tasmania’s average price tag and $99 in Victoria.
Thus, this means that the coal plant’s closure has had flow-on effects on Tasmania, but has been offset by the low cost of building, operating and maintaining the electricity network.
Queensland and Tasmania are the only two Australian states that have not increased power rates since June. The ACT will have the biggest price hike with an increase of 9.3%.
Between 2016/17, the total average electricity bill for the year is estimated to be at $1,353 which is a 4.4% increase from the year before.
Featured Image Credit: Karim D. Ghantous