There is a blame game that has started between the Prime Minister and the state governments over the issue of power prices. Prime Minister Julia Gillard has put the onus on the shoulders of the state governments, stating that the surplus cost of new poles and wires installed by the state government is the sole reason behind such a rise in the price of power in South Australia and New South Wales.
The new price, which would be applicable from July 1, is a steep 18% than the current rates and is driven by the carbon tax along with the cost of upgrading the NSW grid.
Ms Gillard said, "The big mass of the costs, coming out of the new investment in poles and wires is something done by state government and it doesn't come with real assistance for families and that's a matter for state governments to address". She also went on to add that the delay in the network upgrades has also helped in such a rise, which could have been avoided. There would be an average rise of $3 a week in household bills while families would receive an average of $10 per week in government assistance.