What is causing the rise?
A large factor in the rising prices is the increasing cost and reduced reliability of fossil-fuel burning power plants. As legislation and social pressure continues to drive investors towards the renewable energy market, black coal power plants are struggling to maintain their production rates amid the rising cost of fossil fuels.
The increased cost of the raw materials necessary to run these plants is also contributing to another, more noticeable cost of living increase, that of fuel.
Who is being affected?
While electricity prices are rising across Australia, the biggest changes will be seen in Queensland and New South Wales. Four energy companies (specifically ‘Discover Energy’, ‘Mojo Power’, ‘ReAmped’ and ‘LPE’) are the first to announce the increase in prices. While they may be, it’s not unreasonable to assume that larger energy companies will be forced to adopt similar tactics should the circumstances persist.