Antinuclear

How Australians are paying up big time for others’ air conditioning

The percentage of homes with air-conditioners has jumped from around 25 per cent in 1975 to nearly 70 per cent now, with the percentage nearly doubling in the last decade. Those households which do not have air-conditioning are paying an effective a cross subsidy of $330 for the use of those devices during those 40 hours of critical peak periods.

Why you are paying $10/hr to run your neighbour’s air-con  REneweconomy By Giles Parkinson on 18 October 2012 We’re not quite into the scorching summer temperatures peaks, but here’s a thought to help boil your blood the next time you lie on the couch, sweltering in the heat. You’re one of  a minority of households that do not have air conditioning, but you might as well, because it’s costing you pretty close to $10 an hour in those summer peaks to subsidise those that do.

That, at least, is the broad conclusion of the Productivity Commission’s report into electricity prices, which shines a light on a well-known fact that has suddenly become political dynamite – nearly all the electricity price rises in recent years is due to the unbelievably inefficient way we use and supply energy.

Here are a few facts that are probably well known but are worth repeating here.

Around one quarter of all our electricity bills are caused by the cost of the infrastructure we have built to meet the “critical” demand peaks that occur for just 40 hours of the year – almost exclusively when people turn on air-conditioners at the same time to seek relief from those summer temperature scorchers.

The percentage of homes with air-conditioners has jumped from around 25 per cent in 1975 to nearly 70 per cent now, with the percentage nearly doubling in the last decade. Those households which do not have air-conditioning are paying an effective a cross subsidy of $330 for the use of those devices during those 40 hours of critical peak periods.

How does that work? The PC produces figures that show each 2kW air conditioning systems requires around $7,000 of added infrastructure investment – made up for $4,000 in distribution (in neighbourhoods), $1,400 in transmission (from the central coal fired power station), and $1,600 in generation costs (gas fired peakers). As the PC points out, air-conditioners are rarely used, accounting for just 20 per cent of total demand, but the majority of peak demand?

What to do? Other have suggested innovative structures such as a voucher system – get the retailers to pay for a visit to the local shopping centre or the cinema where air conditioning runs all the time anyway – or slap a network surcharge when you install an air conditioner…..  http://reneweconomy.com.au/2012/why-you-are-paying-10hr-to-run-your-neighbours-air-con-21376

October 18, 2012 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, energy