In February 2009, the State Government announced the following increases to electricity tariffs:
for households, 10 per cent on April 1 and 15 per cent on July 1; for small businesses, five per cent in April and 10 per cent in July; and for big businesses, up 10 per cent in April and July.
For more information:
Why were the new rates necessary?
Tariffs for residential customers have not increased since 1997/98 (excluding GST) and tariffs for small business customers have not increased since 1991/92 (excluding GST).
At the same time, the costs of supplying electricity have increased significantly.
The increases also take into account costs associated with measures to tackle climate change, such as the Commonwealth’s Carbon Pollution Reduction Scheme.
How do residential electricity prices in Western Australian compare with other Australian states?Over the period 1997/98 to 2007/08, other States in Australia have experienced significant increases in electricity prices ranging from 23% to 69%.
Analysis of price movements in each State and recent regulatory determinations shows that residential customers in a number of States will experience price increases of over 50% for the period from 1997/98 to 2009/10.
How can I minimise the financial impact of the increases to electricity tariffs?Using electricity more efficiently can reduce your electricity bill.
For your home, you can undertake simple energy-saving actions right now or larger actions that require installation of equipment.
If you own a small to medium-sized business, you can cut electricity consumption and improve your bottom line.
State Government Grants and Funding: The Sustainable Energy Development Office provides funding and grants to encourage the uptake of renewable energy systems and energy efficient products and practices in Western Australia.
The Australian Government's Energy Efficient Homes Package: Incentives in this package, including free insulation and solar hot water rebates, aim to improve the energy rating of Australian homes.
What is happening to rebates and subsidies as a result of tariff increases?Existing rebates and subsidies for eligible consumers such as concession card holders, seniors and health care card holders will be increased in proportion to the approved electricity tariff increases.
The Government has also widened the eligibility for the air-conditioning rebate to those who receive the Dependant Child Care rebate.
Are there any programs for those in financial hardship?The Hardship Assistance Package assists consumers in financial hardship who have trouble paying their electricity bill.
Can I negotiate a contract instead of paying the electricity tariff rate?Businesses that consume more than 50MWh per annum can negotiate a contract for the supply of electricity with any retailer, including Synergy and Horizon.
Click here for a list of retailers that eligible businesses can contact to negotiate a contract for the supply of electricity.
Residential customers can move to the SmartPower tariff with Synergy if they choose to. SmartPower is an alternative optional tariff provided by Synergy that has different pricing for different times of the day.
By using electricity in the times of the day when it is cheaper, you may be able to save on your electricity bill.
How were tariff increases calculated?The Office of Energy engaged independent consultants Frontier Economics to model the components that make up the cost of producing and supplying electricity. The cost components were added together to form the cost reflective electricity tariff.
Further information can be found in the Office of Energy Final Report on the Electricity Tariff Arrangements.
Why are tariff increases for residential customers higher than increases for small and large business customers?While residential tariffs have not increased since 1997, a number of large business tariffs were increased on 1 July 2007 (with a smaller increase of 5% on 1 July 2008). The Government is aware of the impact of a further large increase just two years later.
For small businesses, the recommended increases to reach cost reflective levels are lower than the recommended increase for residential customers. As a result, the approved increase is also lower. |