Electricity prices set to drop as EU links come into play
Source: The Sydney Morning Herald, 24 April 2013
After years of pain from surging power prices, relief is in sight thanks to the decision to link the carbon price to the European market, with the pricing regulator - the Independent Pricing and Regulatory Tribunal - forecasting electricity prices could decline an average 5.9 per cent from mid-2015.
And if last week's collapse in the carbon price in Europe is sustained, this could result in prices falling even further.
On Tuesday, IPART estimated electricity prices will rise an average of just 3 per cent from July 1. Households in rural NSW will be the main beneficiaries with virtually no price rise expected after they suffered substantial increases over the past few years. Prices through much of central Sydney rose to a higher 4.3 per cent.
The forecast declines follow rises of more than 60 per cent in electricity prices in some parts of the state over the past three years.