Antinuclear

Electricity network upgrades, not renewable energy, are causing cost rises

Smart meters, time-of-use tariffs, cutting demand at the peak and localised power generation – for example, from rooftop solar panels – can help cut this network spending. The problem is the network companies have no financial incentive to make this happen

High power rates: it’s a poles and wires story, SMH, Paddy Manning, Brian Robins June 12, 2012 Poor demand management means consumers could be paying for infrastructure that isn’t really needed. Electricity prices have been rising fast and, from July 1, they are set to go higher.

Green schemes such as the renewable energy target and feed-in-tariffs – as well as the coming carbon tax – are often
blamed for pushing up prices, but the reality is they are responsible for only a small part of the increases approved by the Australian Energy Regulator.

By far the largest driver of the price increases is increased spending on electricity transmission and distribution networks (the ”poles and wires”), which is passed on to residential and commercial customers alike. These network costs account for 57 per cent of the average residential electricity bill around the country, the Australian Energy Market Commission says, and about 40 per cent of the scheduled price increases between 2011-12 and 2013-14 ……

as peak demand continues to rise – for example, from greater use of
airconditioning – overall usage is declining because of higher prices,
rooftop solar panels, more efficient appliances and falling demand
from manufacturers owing to the high dollar.
More infrastructure is being built to meet demand surges that occur
just a few hours each year.
As much as 25 per cent of electricity costs result from peak demand
that occurs over a period of less than 40 hours a year, the federal
government’s energy white paper says. A 2 kilowatt reverse-cycle
airconditioner, for example, costs about $1500 a year to operate, yet
imposes costs on the energy system as a whole of up to $7000 since it
adds to the demand peak, a bill that is paid by all electricity users,
whether they have airconditioners or not.
Smart meters, time-of-use tariffs, cutting demand at the peak and localised power generation – for example, from rooftop solar panels – can help cut this network spending. The problem is the network companies have no financial incentive to make this happen. http://www.smh.com.au/business/high-power-rates-its-a-poles-and-wires-story-20120611-20603.html#ixzz1xhsWrDjs

June 13, 2012 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, energy