The cost of energy is rising as the world’s population and consumption continues to increase. As demand for energy outweighs supply, prices are going up. Unfortunately, there are indications that prices will continue to increase.
According to the Federal Budget we can assume power prices were expected to grow by an average of 20 per cent nationally as of late 2022, and a further 30 per cent over the next 2 years. This is a worrying trend as it has a direct impact on the cost of living and can be felt by most Australians right now.
Why are prices so high?
Australia experienced a range of global price shocks, including pandemic-related supply chain disruptions and the Russian invasion of Ukraine. These issues have caused global energy prices to more than double since COVID. Australia still relies heavily on coal and gas and the price of these fuels has sky rocketed in 2022 due to an international shortage.
What can we do about it?
In the long run, switching to renewable energy will permanently drive down power bills and keep them lower.
“You would see a significant drop in price on the wholesale market (by) injecting more renewables into the grid.”
Associate Professor Liam Wagner told 9News.
The ACT are miles ahead of the rest of the country sourcing 100% renewable electricity.
Whilst prices raised in the other states, The Australian Capital Territory power prices went down.
Treasurer Jim Chalmers indicated that climate and environment funding would indirectly bring power prices down.
“Renewable energy isn’t just cleaner energy. It’s cheaper energy”.
If we put aside the global factors, Australia is unlikely to feel any relief on the price for at least another few years if we continue to use these unsustainable fuels.
We desperately need more renewable energy generators that can be moved into the grid (to fill the gaps of the failing coal-fired station that are too old to be running in 2023).
What are some tips and tricks?
Consider these options to reduce your energy costs in summer:
- Opt for fans instead of turning on the air conditioner.
- Reduce heat from direct sunlight by using shade on windows (especially north and west facing).
- When temperatures drop outside, open windows or doors on opposite sides of the room.
- Block draughts and cracks with window and door seals.
- Use the dishwasher or washing machine when its cooler and avoid using the oven in the hottest part of the day.
- If you own a pool, invest in a more energy-efficient dual, multi or variable-speed pump and run it during off-peak hours.
- If you use gas or electric heating for your pool, consider switching to solar or a heat pump and remember to use a pool cover.
Want to reduce your power bills right now? Enquire now and figure out how much you could be saving today by making the switch.