Electricity prices jump 12 per cent, six times the average pay rise.

Electricity prices have jumped by six times the rate of the average pay rise, new figures reveal, as family wallets are increasingly squeezed by essential services such as education, utilities and fuel.

The price of oil has jumped by 11.4 per cent over the past year.

The surge will increase concerns among policymakers over energy and household budgets as Parliament gets ready to resume next week, with both parties putting reducing cost of living pressures as their key policy pitches to voters this year.

Read Eryk Bagshaw’s story in today’s Melbourne Age - “Electricity prices jump 12 per cent, six times the average pay rise."

Frydenberg 'absolutely confident' energy prices will fall but gives no guarantee

The energy minister, Josh Frydenberg, has stopped short of guaranteeing prices will come down under the Turnbull government’s new energy policy, but says he’s “absolutely confident” power prices will fall.

Josh Frydenberg and Malcolm Turnbull speak to a
 worker at the Ixom plant in Melbourne, on Friday. 

Frydenberg also indicated the major parties might be able to come to terms on the mechanism, which imposes reliability and emissions reduction obligations on electricity retailers.

He said it was possible Labor might agree on the mechanism but propose a more ambitious level of emissions reductions, with that a point of difference between Labor and the Coalition at the next federal election.

Read Katharine Murphy’s story on The Guardian - “Frydenberg 'absolutely confident' energy prices will fall but gives no guarantee.”

Battlelines: Malcolm Turnbull warns of soaring electricity prices under Labor

Malcolm Turnbull.

Soaring electricity prices under Labor's green energy agenda, a new attempt to legislate "job-creating" company tax cuts, and new savings to fund more affordable childcare are shaping as key government battlelines in the political contest this year as Malcolm Turnbull prepares to outline his strategy on Wednesday.

The Prime Minister, under growing pressure from voter disaffection and simmering discontent on his right flank, will unveil his objectives for 2017 at the National Press Club in Canberra, hoping to regain the political initiative, silence internal critics, and lay bare the dangers to growth and household budgets of the Labor alternative.

Read Mark Kenny’s story in today’s Melbourne Age - “Battlelines: Malcolm Turnbull warns of soaring electricity prices under Labor.”

(Malcolm Turnbull has a rather lopsided view of power costs, measuring them in immediate economic terms and ignoring the undeniable medium and longer term social and economic costs arising from fossil fuels. The short-term economic costs of renewable energy may well be higher than what is available through fossil fuel powered electric generators, but renewable power will be vastly cheaper, economically and socially, over the medium to longer term – Robert McLean).