City fringe and country will be worst hit by carbon tax price rises

BATTLERS in Melbourne's fringes and the bush will be hardest hit with electricity price hikes averaging $155 a year as the carbon tax zaps family budgets.

A Herald Sun analysis has revealed residents in the city's outer suburbs will likely cop the brunt of rises from July 1.
The predicted pain is the same across the country.
It comes as Victoria's major power retailers raise charges as much as 15.6 per cent to claw back costs from the Gillard Government's green scheme and to cover commodity, generation and retail outlays.
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Energy Users Association of Australia executive director Roman Domanski said the timing for households already battling living costs could not be worse.
"It's a very bad situation for all electricity consumers," Mr Domanski said.
"For the past three or four years now electricity prices have gone up dramatically.
"Once the carbon tax comes on top of it, it will be even worse."
The Government expects bills to rise an average of 10 per cent because of the carbon tax when it begins in less than a fortnight.
Energy Supply Association of Australia chief executive Matthew Warren said the industry was doing all it could to avoid the impost, but urged unhappy customers to switch retailers.
"The energy market in Victoria is ferociously competitive," Mr Warren said.
"Like supermarkets, airlines and other markets, energy companies in Victoria are cutting costs to be able to compete against each other on price."
The Herald Sun estimated average bills for households using 4000kW-hours a year, typical for those with gas hot water.
Existing bill averages from the Essential Services Commission were combined with an average of price rises from the three major retailers in each distribution area.
In the SP AusNet distribution area, which includes outer northern and eastern Melbourne suburbs and eastern Victoria, the average annual bill is estimated to rise about $155 to $1420.
Bills in the Powercor area, which takes in Melbourne's outer western suburbs and western Victoria, are estimated to rise the same amount to $1403.
Inner-city bills are estimated to increase the least - an average $138 – but are going up the most as a proportion.
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THE Dohertys, pictured above, say the predicted rise in their power bill gave them no other choice but to find a better deal.
"The price of living has grown, and every cent counts when you want to live a life and bring up kids," father of two Tudor Doherty, said.
"Since the price of electricity has gone up we have been burning wood non stop."
The Dohertys of Mt Evelyn had not changed any of their providers in the past.
But after receiving a recent letter forecasting the price hikes, they began searching for a cheaper deal.
"Now we are definitely looking to change companies before the introduction of the carbon tax," Mr Doherty said.
"I have got friends who have done it ... and they said you could probably make 17-18 per cent in savings."
He believed "there are other ways the Government can be addressing the issue. But at the end of the day a dollar saved is a dollar earned".

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herqaldsun.com.au 18 Jun 2012