Shepparton will experience rise in energy prices

This week, AGL has confirmed their plans to raise power prices in the New Year. The company has revealed its default electricity tariffs are to jump an average 9.5 per cent from January 1 2018. The price increase comes as a result of the Labor Government’s closure of Hazelwood Power Station.


The Nationals Member for Northern Victoria Luke O’Sullivan has spoken out against the plan to raise power prices, stating that energy prices have already increased significantly.


“This is more unwelcome news for Shepparton families and businesses who have already felt the effects of rising energy prices. The cost of living is high enough as it is and this is yet another blow and another cost that the Shepparton community will have to wear.” Mr O’Sullivan said.


AGL is Victoria’s biggest energy retailer, supplying energy to more than 1.1 million residential electricity and gas customers in Victoria. A spokesperson for AGL has said its electricity price rise reflected a large wholesale price increase.


Mr O’Sullivan stated that the closure of Hazelwood Power Station has been a big contributing factor to the increase in energy costs, citing the implementation of diesel power generators as an inadequate solution.


“The closure of Hazelwood this year saw the loss of 750 jobs and Victoria’s baseload energy capacity drop by 22 per cent.


“The flow on effect is that a drop in baseload energy capacity means an increase to the wholesale power price and that cost gets passed on to the consumers.


“Experts have predicted that Victoria will not be able to generate enough baseload energy to keep the lights on during the coming summer months and diesel powered generators are far from a long term solution.


“The Labor Government closed Hazelwood for being too dirty and then brings in diesel generators, which will burn 500 000L of diesel per day, to fill the energy gap.


“Diesel power is also about 2 or 3 times more expensive than gas or coal power and this could be another cost that will be passed on to consumers.“ Mr O’Sullivan said.


“The increase in energy bills has been far worse than the Andrews Labor Government predicted and with this announcement from AGL and the implementation of diesel powered generators, bills are going to continue to skyrocket.”

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