How Much Do People Spend On Power Bills In Australia?
Power plays a vital role in the lives of Australians, what with households and businesses relying on power for heating, cooling, transport, cooking, machinery operation and more. The rapid growth of Australia’s economy has led to an increased use of power. Other factors such as increased population leading to more households have contributed to the increased demand and use of power.
Over the last few years, the cost of electricity has increased considerably and this is primarily due to the increased demand for electricity. According to the Australian Bureau of Statistics, the retail prices of electricity rose by 72% while the price of other domestic fuels went up by 45% between 2007 and 2012. The largest price increase was experienced in Perth, where the cost of electricity and gas increased by 88%. Darwin and Hobart exhibited the smallest increases of 2% and 20% respectively.
How much are we spending on energy?
A recent survey by Australian Bureau of Statistics cited that the average household spends up to $60 every week on vehicle fuel as well as $39 on electricity and gas. This accounts for an increase of $5 on the weekly energy cost. Households in the Northern Territory face the highest energy costs as compared to any other territory or state in the country, with the total weekly costs amounting to more than $100. Queenslanders experience the lowest energy rates with their weekly charges totalling $93.
Households in states experienced the coolest climates face the highest electricity and gas costs, while those in warmer, temperate regions face the lowest costs. If measured as a proportion of the gross household income, Tasmanians face the highest power and gas costs. Those living on the island use up to 6.9% of their weekly income on power bills. Those in the Australian Capital Territory (AST) use 4.5% of their weekly income on these bills, accounting for the lowest in Australia.
While power bills account for up to 10% in some parts of the country, the cost can go as low as 3% in high-income areas. The Australian Bureau of Statistics also cites that in low-income areas, 13% in five of low-income Australians have their electricity supply cut off every year while a total of 18% of them are unable to pay their bills on time. Collectively, Australians use 5% of their weekly earnings on power bills. This, however, depends on several factors including location, service provider as well as income level.