Yet more power price pain coming for some ?

[Lester]

..

Just a sharing of thoughts . . .

Just how high do you think power bills can go ?

Well, obviously with inflation a lot higher over time, but I'm talking about the increases just in the past couple of years, and now likely again in a few months for some consumers in the NEM system, all way more than CPI / wage growth / average investment growth.

All through the news now, some of you will have seen this already in news reports.

https://www.abc.net.au/news/2025-03-13/power-bills-rise-as-aer-lifts-benchmark-price/105040808 

I honestly thought here in SA would be sitting on the peak rate just under 50c / kwh for some time (the highest in the country by far), after increases of around 50% to power bills over the past 2 years.

While not yet final approved, what's the chances these increases will get through ?

Pretty high I'd say.

Not AGL's or any other retailers fault of course, but that of the Australian Energy Regulator (AER) advising they are recommending sweeping increases in numerous states to the default market offer (DMO).

(Hmmm, so what's happened to all this 'green cheapest energy' we keep hearing about ?)

If the SA proposed 5.1% increase gets through, it will push peak rate to just under 52c / kwh inc gst come July 1st.

My 1st quarter 2023 rate was 0.3244c inc gst, so from then to the new proposed change will see peak time of use rates increased 51.6% in 2 years.

Supply charge then 0.76c, now 1.023c, that's 35% more as well.

What makes you laugh (if it was funny) is that just July 1 2024, we got a wholesale price reduction !!

Pre reduction was 50.171, dropped a whole 0.748c (down 1.4%) to 49.423c.

We'd already started planning the overseas trip with that windfall, but then . . .

Getting hit from all sides.

Having already gone down the solar road after those two year ago massive rises, Nov 2024 saw the solar FIT dropped from 6c to 4c after our first year on that, so that earlier July reduction 0.748c / kwh bonanza is taken by FIT reduction within minutes.

And we have the solar soak 'sun tax' of 1.2c / kwh reduction from FIT, starts here in SA this July 1st as well !

Excess solar between 1000 and 1500 with see FIT (4c) reduced 1.2c = 2.8c feed in during the most productive daylight hours.

Also coming in for QLD / VIC at the same time, not sure about Tassie . . . it is already in NSW from last July 1st.

Worse for Vic solar consumers, their FITs are mooted for 2c soon (already started ?), so they will get 0.8c feed in.

Bear in mind, FITs are almost irrelevant now, solar alone is destined for oblivion, unless you can self consume, this is where the real savings are.

For working households, a double investment of solar and a battery is needed now, so upwards of $15k to $20k for a decent setup.

I have no idea how households under a lot more pressure from all the cost of living increases we have faced, continue to face, are coping.

What would YOU like to see to relieve pressure on your energy costs ?

Do you even have any real options to cope with ever rising bills and changing of the 'goal posts' by regulators ?

[NeilC]

@Lester

You are forgetting the obvious, the retailers are making a fortune from your feed-in.

They are paying you 4cents and selling it to another customer down the road from you at full cost.

This is another reason why the push for homes to have a smart meters is continuing...

[Lester]

..

Nice to hear from you Neil.

"retailers are making a fortune from your feed-in"

Indeed, that should be obvious to anyone with solar 😞

Thanks for pointing it out for those considering solar, but haven't yet looked that far ahead.

They should also look at plans retailers might put them on (or have available) with smart meters, TOU can be a huge trap for working families.

Not happy about that, all you can do to avoid this is get a battery, or an EV to charge during the day, and soak up as much of your own production you can with normal usage appliances in the home.

Crank up that air cond during the day to cool the house for nothing, turn it off from 1800 - 0000 (0000 for us on EV rate, for others it is probably the normal 0100).

That self consumption is the only way grid connected, stand alone solar works now.

A difficult balance for seasons, you don't want to be charging or using power in the home over and above production, paying daytime rate . . . probably if close to the edge of this, you'd need good battery management, or Catch Power so you can avoid using too much, spread usage out to stay within production.

Looked at another battery option a few nights ago at a presentation.

Not overly impressed with the way they presented figures, kind of like a lot of solar companies when quoting people.

Best scenario, not allowing for seasonal, but I know what I need now when we take that leap.

It is getting much harder with stand alone solar to maintain benefits, even for those that can self consume production a fair amount.

FYI, my data is a complete shemozzle again now (since 7/2), still trying to get it sorted.

AGL reps seem less responsive now since David P left.