Energy prices set to rise again

Treasurer Christian Porter has revealed that energy and water prices will rise across Australia.

He said in his budget announcement that the cost of electricity is set to go up by 3.5 per cent, while water rates have been hiked by six per cent.

Many economists had predicted power rates to increase by five per cent, so Aussies will be glad that the actual rise is lower.

However, it is still slightly higher than the rate of inflation and comes at a time when a lot of Aussies are worried about the state of their bank accounts.

The latest Westpac/Melbourne Institute Consumer Sentiment Index showed that a growing number of people are less confident about their financial situation than they were last month.

Christian Porter said the new pricing structure is aimed at providing fair rates, while also taking the true cost of production into account. Despite this, he warned that this may not be the end of the price hikes.

"Unfortunately, outside of this budget looms the reality that the carbon tax will increase electricity prices by a larger amount," he remarked.

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