Energy Market

There are many companies and brokers claiming to provide cheap or the cheapest electricity and gas rates in Victoria, NSW, Queensland and South Australia.

All these terms, however, are relative to the base price of the electricity. In Australia, every retailer will have a retail price for the electricity they sell. In some states these prices are regulated by the Government, and in others, the Retailers are allowed to set their own price, as long as they don't exceed Government allowed prices.

When electricity brokers or retailers advertise for cheaper or cheap electricity, it is always relative to the retail price. So, the electricity rate may well be cheap in comparison, but it may not be cheap overall. Hence, it is prudent to calculate the estimated costs based on consumption and the rate being offered. Energy Watch has an automated calculator that can estimate the electricity costs for an individual household based on the consumption and the cheapest and most suitable electricity rates being suggested to our customers.

The other consideration you have to make is that electricity prices worldwide are on the rise, including in Australia. Electricity generation depends on the commodities used to generate electricity, such as coking coal, oil and gas. Nuclear Energy and Renewable Energy have not reduced the cost of electricity to date, but may do so over time as the technology improves.

Solar Energy, for example, is quite expensive to produce. However, it is foreseeable that the cost of solar energy will lead to much cheaper electricity in the future. The advantages of Solar Energy are that unlike oil, gas or coking coal, it is produced from a free source, the Sun, which is readily available wherever the power station needs to be built, it is endless and there is plenty of it.

And even with Solar Power, the question remains whether Governments will end up putting a tax on the Sun as it starts to replace mainstream energy sources. After all, Governments do need to replace one source of income with another. We do pay tax on Water, Land and now Carbon Tax on Air. So why not the Sun? Let's hope not for a while yet.