Power prices 'are causing Aussies the most strife'

Mozo

Monday 24 September 2012

There are many things that are causing Aussies a great deal of concern at the moment, but it seems that power prices are the biggest problem of all.

A recent study by Choice showed that 55 per cent of households are "very concerned" about their electricity bills, while 30 per cent said they are "quite concerned" about the impact high utility rates are having on their finances, the Sydney Morning Herald reports.

Plenty of Aussies have had no choice but to dip into their savings accounts in order to cover the high cost of living in Australia and many of the survey respondents fear the situation will worsen in the near future.

Of those who feel power prices will soar in the next year or so, 44 per cent suggested the government's carbon tax initiatives were the biggest cause of inflated bills.

A further 40 per cent felt that greedy utility suppliers were to blame.

Head of campaigns at Choice Matt Levey told the news provider that the panic surrounding high energy rates is resulting in more people switching to deals that may not be cost-effective in the long run.

"People are being mis-sold products, with frenetic churn at the retail end, but this is no substitute for the reform in the actual process of reining in price rises," he was quoted as saying.

Of course, power bills are not the only essential living costs that are stretching people's finances to the limit.

Leaders at global agribusiness bank Rabobank recently stated that the price of food is likely to increase sharply in 2013.

Head of agri commodity markets research Luke Chandler believes that the value of an average basket of groceries could rise by 15 per cent next year.

This is obviously not an ideal situation, as a lot of Aussies are already having to take drastic measures to ensure they have enough cash each month to cover the basics and levels of disposable income appear to be shrinking all the time.

Power prices 'are causing Aussies the most strife'

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