Big switch is on for cheaper power

Sisters Keelin, Sarah and Brooke wash and dry their own clothes daily instead of using the dryer. Picture: Bianca De Marchi, Source: The Advertiser

HOUSEHOLDERS are switching power and gas providers at their highest rate in five years.

Figures provided by the state's energy regulator, the Essential Services Commission of South Australia, show at the current rate, almost one-in-five power and gas customers will change their retailer during the next year - the highest activity levels since October 2007.

Consumer advocate One Big Switch and The Advertiser have highlighted the dissatisfaction with the power companies by signing up about 92,000 Australians as part of its campaign for cheaper electricity before the carbon tax was introduced yesterday.

With average power bills rising 4.6 per cent because of the tax, and a total of 18 per cent because of power generation costs, welfare groups have heightened their concerns that cost of living pressures may be pushing the most vulnerable too far.

The majority of the 18 per cent hike in network prices is due to the increased payments made by ETSA for energy exported by rooftop generators, under the State Government's feed-in tariff scheme. It has led to a significant increase in the uptake of solar panels in SA and the cost of the scheme is effectively met by all electricity customers through higher network prices.

The scheme led to an increase in the average household energy bill of about $6 in 2011/12 compared to $110 in 2012/13.

Uniting Communities manager of advocacy Mark Henley said while the tax would add to cost burdens at least South Australians were receiving compensation for it. His main concern was the escalating hits to the hip pockets of low-income earners through other cost of living pressures.

Energy Ombudsman Sandy Canale said users should carefully check their accounts and if they have concerns contact their energy retailer for assistance.

Northgate mum-of-three Rachel Thamm said she had mixed feelings about the carbon tax. "It is concerning that prices are going up but we feel it is also important to be doing something to protect the environment for the future," she said.

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Big switch is on for cheaper power