From July 1 the price of electricity will rise by about 20% - and for most households that means an extra $ 3.50 to $ 4.00 per week drain on finances. Pensioners will get an extra $ 18 a year utilities allowance, thus the state is clawing back some of that $10 rise granted in the Federal budget.
The screams of pain are concentrated on the blow to household budgets, but that electricity price rise will most certainly hit even harder with an across the board leap in inflation.
Next time you are in a supermarket look at the huge number of ceiling lights making it a pleasant place to shop. Then consider the refrigerated aisles keeping food in pristine condition - and think what extra cost of running that price rise will have on their power bill.
It is as inevitable as night follows day that the price of all items will rise to cover that cost. Now extend that thinking to all the other businesses that provide our needs - and remember that what we pay in home electricity price is called the " domestic rate " - and that is far cheaper than the rate levied on premises deemed " commercial ". As a result - that 20% will translate into a bigger hit on the hip pocket for those running a business - and that means an increase in retail prices for us consumers.
We are told that this price rise is the only alternative to load shedding and blackouts - which is an admission that our state government scrimped upgrading the power industry and doing essential maintenance over the years.
No wonder they were so desperate to shed ownership of power generation a few months back.
They knew bad news was coming. The only difference is the extent of that bad news - and that is something we will learn at our cost when the price rise impacts on industry !
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