Increased power prices to hit consumer hip pocket

Australian consumers face significantly higher prices for goods and services as big energy users pass on the increased power costs caused by drought, whilst jobs may be under pressure at businesses that are unable to pass on the cost to consumers. The Energy Users Association of Australia (EUAA), who count the likes of BHP Billiton and Woolworths amongst its members, warns that energy-intensive industries such as supermarkets, automotive, steel, paper, cement, plastic and chemicals sectors, will look to pass on increased costs to consumers. Companies renewing their power contracts are facing “massive power shocks” with prices rising between 30 and 120 per cent. The EUAA has expressed concern that the price increases are not entirely caused by the drought, with some evidence suggesting “the electricity generators were changing their bidding behavior to take advantage of the situation.”