Electricity

The biggest reader reaction I have ever had to a column involved a fight with the power company AGL, which had hit me with a baffling bill which had jumped by $700 in just one quarter.

Cartoon: Peter Nicholson

The column examined the question of actual meter readings versus estimated readings, and the issuing of so-called “catch-up” bills by power companies which for whatever reason had undercooked an earlier bill, leaving them with no choice but to whack the consumer with a kind of one-off bill which would force you to sell one of your kidneys.

In researching the piece I was snowed with some largely (and possibly deliberately) confusing explanations from power providers as to how the meters were read by a different company which was at arms length from their business. Both the power providers and the meter readers seemed more than happy to blame each other for all the confusion, and the subsequent one-off impost.

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  • LC says:

    07:46pm | 07/05/12

    Daniel, They are not (and hopefully never will be) a government in their own right), but at the moment they are in an impromptu coalition with Labor and a few independents. And their influence over the government can be felt with the carbon tax and to a lesser extent, gay… Read more »

  • Daniel says:

    08:40pm | 06/05/12

    Fiddler, The Greens are not in any government. Get real! Read more »

 

One day, Gina Rinehart is projected to be worth $100 billion. In the past, I’ve argued she should use a big chunk of that money to do something grand, like fund an entire Aussie space program.

The kind of bridges you'd expect with an extra $200 billion in infrastructure funding. Picture: Herald Sun

So imagine what two particularly philanthropic Ginas could do if they both decided to invest $100 billion into Australian infrastructure.

According to reports this week, during secret mining tax negotiations the day before he was knifed as Prime Minister, Kevin Rudd struck an in-principle deal with mining exec Andrew “Twiggy” Forrest that would’ve allowed mining companies to avoid liability for the 40 per cent mining tax by instead writing off their capital expenditure on Australian infrastructure. Estimates suggested the plan would’ve pumped at least $200 billion into Australian infrastructure every five years. A huge deal for the country.

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  • TimB says:

    02:03pm | 21/04/12

    Economist, royalties may be an ‘input cost’ as you put it,. but the point is that cost goes right into State government coffers it’s doesn’t matter if it’s pre-tax or post tax. The miners are giving money to the government.Then the Federal government gets its usual income tax cut on… Read more »

  • Economist says:

    12:23pm | 21/04/12

    No royalties are an input cost, it’s compensation paid for use of property, just because you’re purchasing of government doesn’t make it a tax. Yes Governments are their own worst enemy for calling it a tax, which I believes what they do, but it’s wrong. AS for the mining tax… Read more »

 

There are sentences which in politics can sum up the mood of the times. In the United States in 1992 it was Bill Clinton’s “It’s the economy, stupid” which encapsulated the sense among voters that George Bush Snr was not focussed on bread and butter issues affecting family budgets.

How much a single train ticket costs

For all the heat in Australia around issues such as border protection and gay marriage, the number one concern for put-upon families is the cost of living. It is simply staggering how expensive Australia has become. Once, tourists from the United States and Europe would come here and live like kings off the back of our low dollar; today they must think long and hard about whether a visit Down Under is affordable.

For those of us who actually do live here, the joys of a cheap holiday to the States, where you can do a year’s clothes shopping at stores like Gap for less than $200, in no way erase the often depressing budgetary reality of life in a country where the cost of power, real estate, petrol, clothes and food have been off the scale for the past few years.

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  • RyaN says:

    11:35am | 04/04/12

    Dear Punch editors, perhaps you can do an article on Smart Meters and the backlash that has been going on around the world. - How about the privacy concerns of every household. - How about the health concerns of households. - Not to mention the VERY dodgy practises that have… Read more »

  • RyaN says:

    11:25am | 04/04/12

    @L: “No WiFi as YOU stated.. one for me. 4G insteady of 3G..still one for me as the current smart meters are 3G, the Telstra 4G network is just too new for this.” Um I really don’t want to have to educate you on the differences between the marketing name… Read more »

 

The staggering rise in electricity prices over the past few years has been the single-biggest cost of living issue for average families trying to bring up kids and get into the housing market. The impact of these price rises, and the anger they have generated, has been seriously underestimated both by governments trying to remain in power and oppositions trying to win office.

Try doing this with my friends at AGL. Photo: Newspix

The trickle-down effect of this explosion in the cost of living has not yet been fully examined. As one example, there were figures out on the weekend showing that the rate of home ownership in Australia had fallen from 71.4 per cent to 69.5 per cent, in defiance of trends across the OECD. You could validly speculate as to how many Australians who would love to shift from renting to owning are so tied up paying inflated bills that they simply can’t get a deposit together.

State governments have tried to quarantine themselves from any responsibility for the spiral, arguing that price rises are out of their hands and the result of external factors. Oppositions have been sluggish to make governments own the problem.

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  • Libby says:

    09:26pm | 23/03/11

    Not surprisingly Richard, i disagree.  I would agree that wealth represents the amount of influence on humanity’s living standards but it does not necessarily follow that that influence is positive.  The positivity of the result depends entirely on what we as a society values foremost.  Andrew Forrest got rich by… Read more »

  • Maccas says:

    12:55pm | 23/03/11

    jordan probably has never had to pay a power bill in his life….. Read more »

 

Australian women hate nuclear power. Men quite like it, but women would rather go back to candles.

Discussions on gender and on the environment always go nuclear on The Punch

This is the startling finding of Auspoll’s latest research, a poll of 1,500 Australians’ attitudes to the sticky problem of how we should generate the energy to run our homes, industries and, well, everything.

Not so long ago we never thought much about energy - flick a switch and there it is. We hardly knew nor cared how it was generated, how it got to our kitchens or what fuel ran the generator. It was enough that the lights came on.

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  • Parrish18STEFANIE says:

    05:45pm | 08/08/11

    People in the world receive the loan from various banks, because that is fast and easy. Read more »

  • cerebus says:

    07:25pm | 28/12/10

    @John, I think we are going to have to agree to disagree.  The UN links you provided showing just the maps were meaningless without background, looking around on the same site led to another page which gave more background, which indicated that whilst there was radiation detected across Europe as… Read more »

 

Last week we asked the question - how much bad publicity can you buy for $801.91. That’s the amount I’d been charged by my power company for two months’ electricity in a one-bedroom apartment, extravagantly fitted with such turbo-charged items as a toaster and a radio.

Many dollars make light work.

The answer was a two-page bucketing in The Daily Telegraph. Given the equally ferocious reader response to the column, the bad publicity will now extend to a generous four pages, not (just) out of some vindictive sense of payback, but because there is a serious rort going on with our power companies.

It involves guess work around meter readings, which creates a gap when an actual reading is made at which a so-called catch-up bill is issued. When an actual reading is made, customers are billed at a new, increased rate for power they used months ago, before the price had gone up. 

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  • Daylight robbery says:

    10:11am | 12/12/10

    “It involves guess work around meter readings, which creates a gap when an actual reading is made at which a so-called catch-up bill is issued.” My mother had to have me read her meter.  The Email meter she has has 6 clock dials numerically segmented to 10 which rotate in… Read more »

  • igiveup says:

    01:51am | 12/12/10

    We gave up and pay our bill weekly. I have no idea how they calculate our bill but its gone up so much we are on an averaging weekly payment with 5 people in the house. Otherwise we couldn’t afford power at all. We pay over 100 dollars a week… Read more »

 

Ban the bomb, no new mines, the three mines policy, additional mines, street marches, fear of nuclear terrorism and the existence of rogue states with nuclear power or weaponry have all been elements in the debate about uranium mining, processing or nuclear power for a long time.

Yes, we all loved a good anti-Nuke march, but that's got nothing to do with 21st Century power generation.

Perhaps its time to get past emotion fear and inconsistency and concentrate on rational debate in a coherent manner.

We are a blessed continent with more than adequate supplies of coal, gas and oil. We are major exporters to the rest of the world in each of these commodities. As I write new sources of energy like coal seam gas, costing tens of billions of dollars have become mainstream in Australia.

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  • DaveinPerth says:

    10:39pm | 10/12/10

    @Fiddlesticks.  5 decades is nothing for the Uranium/Plutonium cycle (current light water reactors). You need 5 centuries, minimum. Do the costs on Thorium (LFTR). Cheaper than coal. Cheaper than everything. AND it can be used to clean up the existing storage disaster from light water reactors. Read more »

  • Fiddlesticks says:

    12:58pm | 05/12/10

    I’d be happy to see some serious current study of nuclear power options here, if only to get some hard evidence about life cycle and actual costs. Given that it’d be 20 years before anything came on stream - that’s about the windown we may have left to do something… Read more »

 

I am not sure how much bad publicity you can buy for $801.91. If you based it on newspaper advertising rates you would get about an eighth of a page. To err on the side of generosity, here’s a couple of pages’ worth from Sydney’s biggest newspaper, aimed squarely at the miserable sods at the electricity company AGL.

Sturt Krygsman in The Daily Telegraph.

To be clear from the outset, this isn’t some sly journalistic attempt to dodge a bill, albeit a ludicrous, unjustified bill. In my dealings with AGL – two convoluted telephone conversations and an email which they have not answered - I have not identified myself as a journalist. If their PR department tries to get in touch, they should save themselves the phone call as I’m paying this bill through gritted teeth, but writing about it here with a perverse degree of glee for two public interest reasons.

The first is that it simply shows the staggering increases in power prices which, while capable of being begrudgingly absorbed by an affluent person, would blast a hole in the budget of any normal family on the average wage.

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  • Matt Holland says:

    11:12am | 25/05/12

    We installed a solar system on our house in october 2011, had troubles having a new meter installed until november.. so missed out on any solar credit, in Feb we recieved a bill for the period nov-jan for $798 .. nearly double our usage from our previous bill BEFORE we… Read more »

  • Stu says:

    09:01pm | 16/05/12

    How about AGL reversing a bill payment 2 years later. Then sending mercantile agents after the amount despite me having correspondence from them stating the account balance is zero. then a year later reversing a 2 year old payment.(the amount has not re appeared back in my bank account). Again… Read more »

 

There is a squeamish message on the Cross City Tunnel website headed “Toll adjustment - 1st October 2010” which is notable for two reasons.

The Cross City Tunnel: $4.41 well spent. Photo: Katrina Tepper

The first is that it reminds us how, in these jargon-addled times, things such as tolls never go up, jump or rise. They simply “adjust”. The second is that it demonstrates how the NSW Labor Government has abrogated much of its responsibility for protecting taxpayers from cost of living increases.

The construction of the Cross City Tunnel, as you may recall, finished behind schedule – but because of the contract between its operators and the NSW Government, where the price of the toll is linked to CPI, the toll actually went up before the road even opened.

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  • Gerard says:

    05:51pm | 13/10/10

    No, the Liberal Party haven’t been ‘in’ government, but they have been part of the government. What bills have they introduced to fix the state’s problems? Yes, the ALP may have claimed the credit for good legislation being enacted, but this is hardly the point. Liberal members, elected to serve… Read more »

  • HappyCynic says:

    12:51pm | 13/10/10

    Hey Richard You don’t read very well do you?  I said we “first need to take this State Labor government out to the back of the shed and put it out of its misery” before deciding if the Libs can do any worse. I’m not a one-eyed rusted on voter… Read more »

 

One of the worst things I’ve seen in ages was the Copenhagen Climate Summit opening film, where a small child has terrible, apocalyptic nightmares after learning about human-induced climate change.

Talk about scandalous fear-mongering. If we’re serious about enlightening young people about sound environmental custodianship, surely the worst approach is a campaign of outright fear.

Less extreme but just as futile is the path of symbolic, one-off action underpinned by a threat of doom. Earth Hour is one such initiative. Its official slogan might as well be “Lights off for an hour tomorrow or it’ll be lights off forever”.

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  • S.L says:

    03:44am | 29/03/10

    When Earth Hour first started Mel and Kochy on channel 7s “Sunrise” progam took the bait hook line and sinker screaming COOL THE GLOBE! I couldn’t believe two intelegent, university educated people could swallow such rubbish! Whether you believe in AGW or not (and I don’t) anyone with half a… Read more »

  • Sam Chowder says:

    07:56pm | 28/03/10

    I turned my lights off but got bored sitting in the dark after five minutes so I went for a drive. Read more »

 

We are all too familiar with the satellite picture of North Korea in darkness at night and the horror stories of millions of people living in impoverishment. More recently I have read Barbara Demick’s, Nothing To Envy: Love, Life and Death in North Korea.

It's Earth Hour 24 hours a day in North Korea

This book is both depressing yet insightful. The journey you take while reading is one of disbelief of a state starving its people yet demanding hero worship of its leaders. The book shows too that no matter how hard a state seeks to control its people, individual spirit cannot be crushed. North Koreans inventiveness and street smarts have been tested to the limit, just in order to survive in such a dysfunctional regime. The book does, however, drive home that a functioning electricity sector is indeed the backbone of every economy.

At the weekend, Federal Minister for Energy, Hon Martin Ferguson MP, in plain speaking, said that we need to come to terms with the true cost of electricity. I couldn’t agree more and full credit to him for raising the issue.

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  • A Bob says:

    09:57am | 29/03/10

    Thanks, Andrew. It raises the question though, that if the CO2 from power stations is such a drop in the bucket, why bother with it at all? Instead of buring even more coal to power the liquification of CO2 and depleting a non-renewable resource even faster, why not just build… Read more »

  • Andrew Goff says:

    03:41am | 29/03/10

    Happy to explain that one: A Carbon “spill” of a megaton would increase the emissions for a year by less than 0.00000001% and have no significant long-term impact on the local environment (excusing any causal explosions!) A “spill” of a megaton of depleted Uranium would wipe out life as we… Read more »

 

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