Electricity price spike pain can be remedied with interest-free loans to switch to renewables and save: Climate Council

15.03.23 By
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AS POWER BILLS continue to rise, the Climate Council has renewed the call for state governments to help householders ditch expensive, polluting fossil fuels.

Today, the Australian Energy Regulator (AER) has released its draft Default Market Offer, which predicts power prices may rise up to 25%. 

Nathan Hart, Energy Transformation Campaigner at the Climate Council, said: 

“Australia’s cost of living crisis continues to bite, with energy companies passing on price hikes to consumers even as they rake in massive profits. Ending our dependence on expensive, price-volatile fossil fuels should be a top priority for our leaders. 

“Coal, oil and gas will always be susceptible to wild price spikes because the price households pay is linked to the international market. Foreign wars shouldn’t dictate the price Australian households pay to heat and cool their home – we can and should take control of our own power.” 

The Climate Council is calling for interest free loans to help Australians replace gas appliances with efficient all-electric ones – like heat pumps and solar hot water – and improve the energy efficiency of their homes. 

“There are about eight million homes in Australia that were built prior to minimum energy efficiency standards,” Mr Hart added. “With a little help, every one of these could be upgraded to deliver cheaper power bills. Smart governments like the ACT and Tasmania are offering interest free loans so families can upgrade and start saving immediately.” 

The Climate Council’s ‘Switch and Save’ report shows that Australian households can save between $500 and $1,900 a year by kicking gas out of their homes, with payback periods as short as six years. 

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The Climate Council is Australia’s leading community-funded climate change communications organisation. We provide authoritative, expert and evidence-based advice on climate change to journalists, policymakers, and the wider Australian community. For further information, go to: climatecouncil.org.au Or follow us on social media: facebook.com/climatecouncil and twitter.com/climatecouncil