Another rant on Energy Prices in AUstralia and Government hands to high income earners

[melbourne_yankee]

Most of you may know that Australia is an energy producer powerhouse.

We export a huge amount of natural gas, coal, and oil as well as mine uranium. We import refined products such as gasoline and jet fuel because we lack refining capacity.

Over the past ten years millions of people have put solar panels on their roofs (guesses are about 25% of houses have them) and billions has been invested in solar energy farms and wind power, however, numerous coal generators have closed and more are closing.  Several years ago one generator responsible for about 20% of Victoria's capacity closed and the idiot Labor Premier of Victoria said that electricity prices might go up 5%................well they went up and kept going up.  Up over 20% just in the year after it closed.

Well yesterday the Federal government budget was announced and there was all sorts of high and high middle income welfare and pork with a few crumbs for the low income and retired people. Well actually no crumbs, but cuts.

More childcare subsidies for families making up to A$500,000, longer parental leave, and income tax cuts for people making 6 figure incomes.  The low and middle income earners lost the low income offset though.

Prescription drug copay for some medicines will fall from A$42.50 to A$30. Whoooopeeeeeeeee!!!

But what was included in announcement was the government's forecast for energy prices over the next couple of years and it was a whopper.  They expect the price to increase by 56% over the next two years.

Yes, you read that right, 56%.

The current government campaigned on REDUCING the cost of energy by some $175 year if they were elected so I guess that was just plain ole BS from the get go and people probably fell for it.

The forecast is for a 20% increase in electricity prices at the end of this year and 20% increase in natural gas prices. They also expect electricity to go up another 30% next year and another 20% increase in natural gas prices.

As a result of compounding the result will be a 56% increase in electricity prices and 44% in NG prices over the two years,

Now, ever since Labor was out of government they have been screaming about how renewables were going to reduce the cost of energy in Australia. Well, we invested billions and the only thing that has happened is prices continue to go up.  Over the past ten years the price of electricity has gone from about 15 cents per KWH to over 40 cents so up only 175%  The supply charge used to be 50 cents a day and is now around $1.10 or so.  Another 100% plus price increase in ten years.

And the Treasurer said that there would be no help or subsidies to people to help them out with the increased costs as it would lead to "more inflation".  I guess throwing billions at people with kids isn't "inflationary" or handing out A$9000 in income tax cuts to high earners isn't "inflationary" either, but giving somebody on the Old Age Pension (Max rate A$24,000 or US$15,000 a year for single person) to help paying their electricity bill is!!!

And today the quarterly inflation figure was released which came in at the highest rate since 1990 at 7.3% a year. And you know what was the ONLY segment to fall?  Transport costs as the increase in the fuel excise tax on gasoline was put off in the calculation until the next quarter otherwise the number would have been even higher.

Gotta make you laugh.

Fruit and vegetable prices were up over 16% in the past year, dairy prices up 12.1%, NG was up by 10% (Sure...... new contracts are showing a huge increase already twice that increase), and electricity was up only 3.2% as a result of numerous STATE government rebates.   Without those rebates the price was up 15.6% over the year.

Welcome to the NEW AUSTRALIA..........................under Labor.