According to new analysis by one of Australia’s leading experts, high gas prices and not high renewable energy prices are responsible for the latest electricity price hike which is the 2nd largest on record to date.
Sydney prices have gone up from 15% to 20%, Adelaide prices from 16% to 20%, Melbourne prices went up in January.
Gas is used to boost other supplies at peak demands. This means that although most electricity is supplied by coal, it is the price of gas-fired power that determines the final price when prices go up.
Last June, Prime Minister Malcolm Turnbull announced plans to impose controls on gas exports to try to guarantee supply and hold back the prices.