There’s no denying that the price of electricity in Australia has increased but when compared to other countries it isn’t that high, according to an article published by The Fifth Estate recently. There are many countries, such as Denmark and Germany, that are paying a lot more.
The article finds that it’s not the cost of energy that is disproportionate in Australia it’s actually the consumption. With an average household in Australia using 6839 kWh compared to 3079 kWh in Germany, 3944 kWh in Spain, and 2432 kWh in Italy.
Low electricity cost stimulates more consumption as there is less incentive to conserve. In other parts of the world there’s a lot of investment in energy saving, houses are increasingly well-insulated, and double or even triple glazing is standard. But in Australia, house insulation is still relatively rare, double-glazing is avoided and heating, ventilation, and air conditioning (HVAC) systems run at full speed summer and winter.
This means the total price Australian households pay for electricity is indeed high; but not because of a high per kilowatt price, but because of inappropriately high overall consumption of energy, which is only stimulated by not so high prices.
Read the full article here: https://www.thefifthestate.com.au/energy-lead/energy/the-real-price-of-energy-and-its-cost-to-us/