Power shock

October 4, 2010, 6:05 pm David Richardson Today Tonight

As electricity costs rise at a crippling rate and families struggle to cope, power company bosses are raking in massive million-dollar bonuses.

Money

Young couple, Liz and Brent, recently received a power bill which has doubled in less than three months. They are shocked at the increase.

"It's just ridiculous. everything's going up but nothing's changed. I don't understand it. It’s stupid."

They rent a tiny one bedroom apartment, they have the usual electrical appliances, but their power usage hasn't changed one kilo-watt to warrant the increase.

"We've done the same thing month in, month out and it's just gone through the roof."

In contrast to the many families having a hard time making ends meet, company executives appear to be living the high life.

AGL Chief Michael Fraser is on a base salary of $1.48-million a year. His bonus was an added $1.85 million. That's probably why he can afford to live in the Highgate Apartments, one of the country's most prestigious addresses. The property, with sweeping Sydney Harbour views, also boasts an athletic club, pool, and boardroom.

Origin Energy Boss, Grant King is also a member of the millionaire power club. His salary is a bit more than $2 million, his bonus $1.82 million. The average price of a home in Grant King's neighbourhood is more than $1.5 million. Right on the harbour, in Sydney’s inner west.

Government owned Energy Australia is run by George Maltabarow. His base salary is $626,000, his bonus another $150,000.

Former Rail Boss, Vince Graham now runs Integral Energy with a salary of more than half a million dollars, and a bonus of $107,000.

While Country Energy Managing Director Craig Murray's total package is more than $666,000, but he doesn't get any bonuses.

"They've got our money," says Brent.

"I just could not believe it.

"They are on million dollar pay packets and then to get bonuses like that. It's not fair. It’s really not fair. And then we're hit with bills like this," says Liz.

"We will try to cut down," says Brent.

"The blanket is going to be our best friend in winter, the light switches aren't going to be turned on, and the blinds are going to be open for light.

"How ridiculous is that."

Queensland Ombudsman Barry Adams has seen thousands of people disconnect from the power grid because they can't afford the price hikes.

"Almost 80% of the cases we investigate are related to electricity accounts, high bills and disputed accounts and over estimated reads."

Others go to extraordinary lengths to save money.

"There's another case where a person was told not to use her oil heater because it was too expensive, so she opened the oven and used the heat of the oven to heat the house."

Electricity price hikes have also seen complaints skyrocket.

In NSW, more than 10,500 people complained about power bills. In Victoria there were 38,500 complaints about electricity and in Queensland hit almost 13,500 complaints, up almost 100%.

Shaun Johnson from Switch Wise can see little relief in the future, other than switching everything off.

"All the indications seem to suggest that over the next ten years we can expect at least a doubling of electricity bills across the country."

"Make sure you shop around as well. There are up to a dozen companies you can choose from so you're not stuck with the same supplier. Make sure you're getting a good deal," says Shaun.

Today Tonight’s Power Fightback Campaign:

If you feel you can't cut back any further and your power bill continues to soar, you can join our fightback.

Send us your bills to show how much they've gone up by and we'll forward your complaints on to the power companies.

Click here to send your bills


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