SA: Report reveals problems of rising power prices

AAP General News (Australia)
08-17-2004
SA: Report reveals problems of rising power prices

ADELAIDE, Aug 17 AAP - Some South Australian households are pawning possessions and
cutting down on essentials like food, health care and housing to cope with rising power
prices, a new report has found.

The Western Region Energy Action Group (WREAG) analysed the energy needs of 12 low-income
families and found they were coping with an average 43 per cent rise in power prices over
the past year.

That meant those households were paying an average of $312 a year more for electricity
and some carried a debt of up to $1,541.

Five of the 12 families said they had missed meals because of a shortage of money after
the increase, while all had been unable to afford a night out and could not raise $500
for an emergency.

WREAG spokeswoman Julie Parr said the report went beyond the statistics to tell the
real stories of households struggling with rising power bills.

"We believe that a basic, affordable supply of electricity is essential to sustain
a decent standard of living and should be available for all people," Ms Parr said.

"But some households are effectively being priced out of access to an essential service."

The report's author Andrew Nance said rising electricity prices had forced many households
to spend less on other essentials such as food, health and housing.

Some had been forced to pawn possessions to keep up, he said.

"And debt levels are still rising despite the sacrifices people are making," he said.

Mr Nance said many households were unable to reduce their energy use because they rented
poor quality housing and relied on older, inefficient appliances.

"However, for some, their energy use is determined mainly by health conditions," he said.

"Reducing energy use only makes their health problems worse."

The WREAG report recommended the introduction of socially responsible electricity tariffs
for households and concessions to better support families where energy use was driven
by health needs.

AAP tjd/rgr

KEYWORD: POWER

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