Revelations that Country Energy improved its profit by $112 million has infuriated Dubbo residents and businesses, who just a month ago learned price hikes could add $918 to the average power bill.
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The Daily Liberal yesterday published information from a leaked Country Energy document showing the company’s financial year profit so far is $295m, excluding tax and interest - about $100m more than it budgeted.
Despite bulk buyers of electricity such as Coles, Woolworths and government being shielded from price rises, business owners like Dubbo’s Rhett Stockdale face hard times.
The owner of Robo’s Computers, whose summer power bill was more than $3000, is unsure how he will fare under a 64 per cent hike over three years.
“My rough estimate is that it will increase my electricity bill by about $10,000,’ he said.
“It comes down to one thing, they want more money ... and they rip off people like us to pay for it.”
President of the Dubbo Ratepayers and Residents Association, Greg Mohr, has organised a meeting to discuss the massive price jump on April 27 at the RSL.
“I don’t think everybody has a grasp on how much it will impact them,” he said.
“A 64 per cent increase isn’t justifiable considering Country Energy made $300m.”
The Government refused to comment on Country Energy’s profit when questioned by the Daily Liberal.
Instead, the Minister for Energy John Robertson said the Government’s energy rebate would apply to more than a million customers after a 13 per cent electricity price increase kicked in on July 1.
“I’d encourage people to contact their energy retailer ... and talk to them about setting up a payment plan that makes paying the bills just a little easier,” Mr Robertson said.
Dubbo MP Dawn Fardell has called the 64 per cent price increase “inappropriate” and “not warranted” in light of Country Energy’s profit boom.
“I am really concerned for people on machines for health reasons ... do we have to live like it’s the Depression, I don’t want people to be terrified but it is going to be difficult,” she said.
The company has claimed its profit windfall came from cheaper electricity, which it purchased on the wholesale electricity market and on-sold to its customers, leading to “the profit margin on sales (being) much better than expected”.
According to the leaked document, Country Energy reduced operating costs by about $33m and boosted general revenue by $11.4m. The company also saved $95.5m due mainly to reduced spending on infrastructure.
Last year Country Energy, along with the other NSW distribution businesses, appealed the Australian Energy Regulator’s determination on network charges.
The AER has told the Daily Liberal the successful appeal increased network charges by $900m to $1bn over the five years to 2013. These charges are passed on to customers.
