Evoenergy blames the renewables’ target as ACT faces electricity bill increase
The planet is gradually transitioning from coal-powered energy power to renewable energy. This move is inevitable with the many governments’ policies set up with a target of mass adoption of renewable energy. However, people have different opinions on this matter, claiming that the world is not ready for this kind of change. Will the world ever be prepared for change? I don’t think so since it is no secret change is scary, especially when it involves starting all over again and abandoning old ways. Currently, many governments have set up renewable energy targets to act as a source of motivation to work hard in the renewable energy sector.
A recent report indicates that ACT is facing substantial power bills increasing with Evoenergy adding fuel to the fire by pushing the blame to the Australian Capital territory renewable energy targets. To reach the complete renewable energy target, ACT buys renewable energy power from solar plants and wind farms from other states, which can be expensive.
Evoenergy is the leading operator of the Australian Capital Territory energy network and is currently proposing an increase in energy bills claiming that the target is to blame for the rise. Recently, the country’s Energy Regulator ministry published this year’s network pricing proposal defining the electricity distribution plan. In the proposal, the residential customer charges would rise by 37% equaling about $280 to the annual bill. In comparison, the commercial businesses expect to shoulder a 41% increase increasing their annual electric bills by $1,660.
Evoenergy states that the increase is driven by the increase in the jurisdictional charges resulting from the renewable energy target by the ACT government. It is no secret that 40% of the customers’ bills come from jurisdictional and network costs. This proposal by Evoenergy was sent to the Australian Energy Regulator, with everyone expecting a decision by May, and if approved, the new charges will take effect by July 1st.
The ACT Government in 2016 registered an ambitious target to have 100% power sourced from renewable energy sources to the Territory power system by 2020. With intentions to achieve this ambitious target, the territory has to purchase renewable energy on large scales from other states with Evoenergy claiming that the increase in electricity bills covers large-scale purchase and the administration association costs.
John Knox, Evoenergy CEO, claims that the decrease in the 2020 electricity billings has resulted in the company asking for a raise to handle the expenses. He explained that the past year’s drop in wholesale power had increased its bills as it purchases renewable energy through contracts. Evoenergy has to deal with jurisdictional charges, distribution charges and transmission costs, and it will continue working with the ACT government to deliver clean energy to the people.