It’s election time in NSW and tomorrow (Sat) we will trudge out our doors, line up outside an election booth and vote… that is if you live in NSW and are over the age of 18. I myself am sick of the lies and know who I will be voting for.
Over the last few years months electricity has gone up 43% and is purported by the incumbent government to go up another 43% over the next 3 years. Ouch we say…an 86% price hike. The reality is though; its not 86% – it works out to be over 100% price hike.
Take small quarterly bill of $200 as an example. The price has gone up 43% over the last few years which makes it $286… an increase of $86. We are told that the price will increase another 43% over the next few years and so in doing the maths we believe its 86% increase…..and go ouch.
The reality though is that its more than 86%. It works out to be over 100% increase. Using the said initial bill of $200 as an example
$200 +43% = $286 + 43% = $408 which is a total increase of $208 above your original bill…its more than doubled.
Now the actual price hike could even be higher. Take for example if the past increases were down over two instalments each time by 21.5%. – We would automatically believe its increased by 43% – yet our assumptions would be wrong.
$200 +21.5% = $243 + 21.5% = $295.25
Now add to this figure two future price increases of 21.5% (43%) and we will see OUCH!!
$295.25 + 21.5% = $358.72 + 21.5% = $435.85.
Now think about what is happening if they were to say the increases will be made in 4 instalments of around 11% each time-
$295.25 + 11% (*4 times)= $448.20
And so we see that every smaller increase actually combined makes for a total larger increase… and I for one am sick of the lies that have come out of the mouths of the powers to be.