Electricity should cost more in peak periods, Federal Government white paper says

Author: ABC News   Date Posted:10 April 2015 

The paper said a rise in air conditioning use on hot days had required heavy investment in the poles and wires network

 

People should pay more for power used at peak times and should be better able to take advantage of off-peak rates to reduce electricity bills, the Federal Government's energy white paper says.

The paper also suggested the rise in air conditioner use on hot days had driven up electricity prices because ensuring the power remained on in those peak periods meant heavy investment in the poles and wires network.

The white paper said that investment was behind the sharp rise in electricity prices over the last few years.

It found the carbon tax and solar feed-in tariffs also played a part but had a smaller role.

It said the price of power was now more moderate with residential electricity prices expected to fall in most places this year - because of the removal of the carbon tax - and will either be stable or decline in the next two years.

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