Night power guzzlers drive up prices

Virginia Rampazis shows off the many energy-guzzling appliances in her kitchen. Picture: Mark Brake Source: The Advertiser

FAMILIES running washing machines and other energy-guzzling appliances at dinner time are helping drive up everyone's power bills, Energy Minister Martin Ferguson says.

Backing plans for new types of household electricity tariffs, Mr Ferguson said if people faced higher evening power prices, it would teach them to use fewer appliances then.

This would ease stress on the energy grid at the daily peak. He said that would help reduce the need to build more "poles and wires" - the biggest driver of skyrocketing bills.

"You have got to learn, for example, 'this is the real price (of electricity) at, say, 4.30 in the afternoon to 7pm'," he said.

"When you are cooking a meal, why would you put the washing machine or the clothes dryer on at that particular time, adding to the peak demand and forcing up prices?"

Families should be instead encouraged to run energy-intensive appliances such as clothes dryers or pool pumps overnight, or at other times.

Mr Ferguson supported time-of-day pricing, under which families would be offered cheaper "off-peak" rates and high "peak" rates - such as during early evening.

"We think, over time, consumers will be winners," he said.

Last week the Productivity Commission recommended radical new pricing models, including big charges on extremely hot days, in return for cheaper power on other days.

This could lead to average household savings of up to $250 a year because energy networks wouldn't have to build up the grid so much to carry electricity on those hot days.

Victoria is moving towards time-of-use pricing, to enable use of smart meters that have cost $2.3 billion to install.

From July, energy network companies can offer different rates depending on the time of day or season households use power.

Social services groups have raised concerns about vulnerable people who need to use power at certain times of the day.

But Victorian Energy Minister Michael O'Brien said it would be voluntary, with no penalties for moving back to a flat tariff.

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