AGL Energy Ltd (ASX:AGK) has tipped that hundreds of Australian households are likely experience fuel poverty because of increased power bills in the next years.
Australia's largest electricity and gas distributor indentifies fuel poverty as a household that contributes over 10 per cent of its income to fuel expenses, and has suggested the government will need to protect these households in a rising electricity price environment.
The Australian Financial Review reports AGL's chief economist Paul Simshouser told the Australian Institute of Energy conference that the average household power bill in New South Wales or Queensland is expected to soar to to around $300 a megawatt hour in 2015.
This figure compares from $135 per megawatt hour in 2008.
AGL Energy says the increase in costs is mainly because of a rise in network costs in transmission and distribution systems as well as renewable energy and carbon costs.
AGL Energy booked a $356.1 million net profit in the 2010 financial year.
AGK Price at posting:
$15.23 Sentiment: None Disclosure: Held
