Energy prices are increasing all the time, and when wholesale electricity prices go up, it means your bill does, too. Sure, everything goes up in time, by why exactly do energy prices increase?
Things out of your control
A standard energy bill comprises three primary elements:
Wholesale costs: Covering electricity generation or gas extraction.
Network charges: Paying for the reliable delivery of energy via power lines or gas pipelines.
Retail margin: Covering meter reading and other services.
Energy prices can unexpectedly shoot up due to a variety of external factors that are completely out of your hands. These factors include things like international shortages, disruptions in the supply chain, rising procurement costs, ongoing network maintenance expenses, administrative overheads, and the unpredictable influence of weather patterns.
Extreme weather events, like heatwaves or severe cold snaps, often mean you’ll need more heating or cooling, which in turn immediately ramps up energy costs. Moreover, if weather-related damage occurs to infrastructure, the financial burden on consumers can escalate even more.
Though these factors might seem distant from your everyday decisions, they play a significant role in determining the final amount on your electricity bill.
“In recent years, much of the increase in prices has been attributed to the need to invest in the network component because of previous underinvestment in maintaining the network or to increase capacity. Also important has been the impact of policies to address environmental issues.” – Parliament of Australia.
Things you can control
While there are many things that contribute to energy price increases that are out of your control, there are still some things you can do to lower your electricity bill.
How much you use: Are your lights always on even when you don’t need them? Are you running a heater on when it’s not that cold, or an aircon when it’s not that hot? Do you know what appliances use the most energy in your home? Read more here.
What electricity plan you’re on: Are you on the right plan for your needs? Or can you switch to something that will better suit your household requirements?
How energy efficient your appliances are: Did you know that by switching to more energy efficient appliances you can save a lot of money on your electricity bills? Energy rating labels are there to inform consumers about the energy efficiency of a specific appliance. Essentially, the more stars on the label, the more energy-efficient the appliance is compared to others in its category. Read more about how energy efficiency ratings work here.
Getting solar: Getting solar panels for your house can significantly reduce your electricity bills. Investing in solar power is a smart long-term choice with eventual rewards. When you have your own solar setup, it’s akin to owning a personal power station right at home. By bypassing intermediaries and managing it on your own, the benefits might not be instant, but the savings will grow significantly over time.
Your Solar & Electrical Experts
Established in 2020, Tropical Solar and Electrical Services is a locally owned and operated company servicing homes and businesses throughout Mackay and surrounding areas including Moranbah, Sarina, Proserpine and Rockhampton. Whether it’s power on the roof or within the property, we’ll ensure it’s running as it should. Get in touch with our electrical experts today for a free quote. We’re available 24/7 for your convenience.
