Recent talk about carbon emission trading highlights only one of the current and proposed overhauls to household electricity supply. It provides a good starting point when discussing the increasing costs in providing this basic need - like it or not, current pressures threaten to put Australian households into fuel poverty. 

Both the Garnaut report on climate change and the emissions trading Green Paper have spoken of the need to compensate low income and vulnerable households for increased energy costs arising from climate change action, as these households have little to no ability to cover these extra expenses.  

The impact of increased costs for these consumers is not just one less fancy dinner out a week, or putting that Sass and Bide top back in favour of a Supre number, but possibly whether to buy the medicines prescribed by the doctor. Or indeed whether to visit the doctor in the first place. 

For this reason, it looks as if Ross Garnaut and Penny Wong’s Department are on the right track, assuming that action follows words. 

However emission trading is not the only cost pressure looming, nor is it the most immediate. 

The unfortunate truth is that it’s becoming more expensive to provide electricity. This is due to a number of reasons, including the need to build more poles and wires as our population continues to grow and sprawl into previously semi-rural land, and the increased use of air conditioners at the peak times of electricity demand.  

The Independent Pricing and Regulatory Tribunal, who set regulated energy prices in NSW, recently approved an 8.5 per cent increase in electricity bills for the average NSW consumer, equal to $88 a year. This comes on top of a $126 rise in water bills. 

Responsibility for energy policy lies largely with state government, and relief is offered. The problem is that relief is designed to meet past levels of need. There has been little movement to further meet the current cost pressures in households vulnerable to fuel poverty today.  

There has been an attempt offered by the NSW Government, the so-called Electricity Safety Net. This was very cynically tied to the success of the privitisation of government owned electricity retailers and generators, and given the difficulty getting the legislation through Parliament, there is no assurance that it will be seen. Regardless, the Electricity Safety Net is not enough to face the new household cost pressures that threaten to put low income working families and vulnerable households into fuel poverty. 

The Electricity Safety Net offers a rise in the Pensioner rebate that does not even meet the general rise in inflation since it was introduced in 2002, let alone the larger rise in energy bills. What is needed is a rise commensurate with the loss to inflation over the last six years, with ongoing indexation to the average rise in energy bills.    

The eligibility for Pensioner payments in NSW is tighter than in other states and territories of Australia. The NSW energy rebates must be broadened to include all people entitled to a Commonwealth Health Care Card, thus ensuring that households in need are eligible for assistance. 

Finally, innovative schemes must be developed to assist niche groups facing further pressure paying energy bills. Just one example is consumers suffering from Anhidrosis, or medical heat intolerance. Anhidrosis sufferers need to keep their air conditioning on in order to avoid the worst side effects of their medical conditions, but are often on low incomes or disability support pensions, and therefore have trouble affording the increased cost of electricity needed to run the air conditioning.  

The solution to these problems is to mix increased rebates with programs that help vulnerable households reduce their energy consumption. This has many benefits, including lowering energy bills, minimising the need for ongoing income support and meeting greenhouse reductions all at once.