So, if you haven’t heard yet, electricity rates are going up again in August. According to a recent news item, this time it’s up another 26 per cent from July rates to 11.8 cents per kWh.
Well 26 per cent is a lot, far higher than any raise I’ll get this year, but this is not the whole story.
When look back a few more months, to my May bill, I was paying just 6.2 cents per kWh. This is then an 87 per cent increase in electricity in just three months!
What’s going on? Has there been a huge increase in the wholesale price of electricity?
I don’t claim to be an expert but I can use Google. Today’s Bloomberg quote for the most expensive price of on-peak electricity is 5.2 cents per kWh. So, apparently Enmax is planning to charge me 227 per cent above the highest peak wholesale electricity rate next month?
Well, that seems a pretty steep but I guess it costs a lot to run an power company, all those power lines and stuff.
Oh, wait a minute, I’m billed for all that infrastructure separately through a distribution charge, transmission charge, administration charge and a local access fee. In fact, all these fees usually cost me more than the power!
So, why the 227 per cent mark-up and the 87 per cent increase in three months? What shall I call this? Robbery? Price gouging?
Where is the government to protect us from these consumer abuses?
As consumers we are clearly getting ripped off.
J. Carson
Red Deer