Why energy costs are rising

THE Energy Networks Association says power charges in Victoria are increasing due to ageing infrastructure, higher borrowing costs after the global financial crisis and pressure to comply with safety and statutory obligations.

Calling for pricing structure reform, the association says there’s higher demand in Melbourne’s west as power companies push capacity of networks to meet growing demand for energy at peak times.

A spokesman for north-west supplier Jemena said: “The way we use energy – with larger houses, air-conditioning, electronic appliances – and where we get it from means the nature and costs of network investment are also increasing.”