Following last year’s staggering 25 per cent increase in residential electricity prices, the WA Government this week announced a 7.5 per cent rise in electricity tariffs from 1 April 2010 followed by a further 10 per cent increase on July 1st.

The impact of these two rises on the average household budget is around $215 per year. The Government chose instead to quote a weekly increase figure of $4.13 to reduce the sticker shock I imagine. Perhaps they should have chosen to quote “less than a dollar a day” instead?

To rub salt into the wound, the Government also announced approval for a 7 per cent rise in Alinta’s gas prices. This follows a 23 per cent increase last year.

As I wrote in this blog last year, WA consumers are suffering from large energy price hikes as the industry plays catch up after a decade of both Liberal and Labor Governments refusing to lift retail price caps to better reflect market prices. Unsurprisingly, Premier Barnett laid the blame entirely on the opposition, saying that the price rises were due to the botched break up of Western Power in 2005.

Unlike most other states, the retail energy market in WA has not been deregulated so consumers do not have the option to shop around for cheaper electricity and gas prices.

You can read more in the WA Premier’s media statement.