Origin Energy’s CEO, Grant King, is concerned that Australian energy prices might triple over the next 10 years. According to an article in The Australian, Mr King thinks that there are many reasons to expect energy prices to skyrocket:

• Uncertainty over the federal government’s proposed Carbon Pollution Reduction Scheme (CPRS) resulting in investment in higher cost wind- and gas-powered generation;
• Mandatory targets for renewable-energy generation;
• Increased electricity transmission and distribution costs due to the need to invest in more infrastructure to support generation from renewables; and
• Higher input fuel costs (e.g. coal & natural gas).

Mr Grant said that the average consumer is not helping either, using more and more energy by buying energy-inefficient appliances such as plasma TVs.

So it looks like the party might eventually be over for Australian households – historically we have enjoyed some of the cheapest energy costs in the developed world but in the decade to come we might end up forking out as much as consumers in countries like the UK.