Reason to be cautious – electricity price tipped to fall, gas price remains uncertain
Electricity price rises in NSW are expected to slow next year to only a 3% rise, which is great news. The Energy Minister Chris Hartcher went on to say that by mid-2015 we should expect to see an average 6% fall. Even greater news as energy poverty has become a greater concern in low income areas.
The reason to be cautious? In the same article in The Australian, the IPART Chairman reported that gas prices are expected to increase by 8.6% next year. Yep, gas prices are increasing at a greater rate than electricity prices next year.
But surely thats just a blip?
Well, the reason for the gas price increase next year is pipeline and infrastructure. Sound familiar?
Anyway, is it just a blip?
The article in The Australian explains it, IPART Chairman “said the wholesale gas market was very uncertain at present, with the prospect of large exports of liquid natural gas raising questions about supply.”
The article also reported that “The Australian Petroleum Production & Exploration Association (APPEA), meanwhile, says NSW should get used to gas price rises as environmental activists seek to curb coal seam gas exploration and development.”
Done anyway trigen or cogen payback calculations recently? You may want to redo them!