New electricity bill structure 'penalises energy saving' and increases costs for low-use households, say consumer groups
Sunday, February 9, 2014 @ 8:26 PM
CONSUMER protection groups have criticised the government's new electricity billing structure as it 'penalises' those who use the least power and does not provide any incentive to save on energy consumption.
A year ago, the 'fixed' part of a household bill accounted for 35 per cent and the variable part, relating to consumption, was 65 per cent, but this was changed last July with a gradual move towards the standing charge taking up a higher percentage of what is paid by residential homes.
Now that this gradual migration has finished, from this week onwards, the fixed charge will be 60 per cent of the bill and the variable consumption-related part 40 per cent.
The government's argument is that the previous method 'penalised' large families with children and meant holiday home owners had cheaper bills.
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