Electricity demand has dropped so much that Australia currently has at least 3 major coal fired power stations more than it needs! (This year the surplus capacity at peak demand is estimated to be around 8,000 megawatts)
In early July this year there was actually zero demand for power station generation in Queensland, mainly due to an estimated power output of 600 megawatts from rooftop solar.
A report by the Australian Energy Market Operator have warned that the electricity generation market is close to breaking point.
Electricity demand, which has been dropping since 2009, will continue to drop for at least the next three years. The closure of major industries such as aluminium smelting and car manufacture is only likely to further decrease demand.
Why Aren’t Power Prices Dropping?
In most ‘Free’ markets when demand drops so do prices.
While demand has been over the past few years electricity prices have doubled . . . . and don’t think that’s mainly the Carbon Tax!
Over 51% of your bill is for Network costs (Federal Treasury Estimates)
When the Goverments’ privatised electricity they allowed the Power Companies to recoup their investment in network upgrades by increasing their charges.
The networks have spent over $45,000,000,000 in the last five years to meet an ‘Increasing Demand’ which we are all now paying for in our bills.
The ‘Joke’ in all this is by increasing their prices the electricity companies have made their ‘Main Competion’, Roof Top Solar, more attractive!
What Now
So after 5 years of getting everything wrong are the power companies interested in doing the right thing? . . . . Like investing in generating power from renewable resources that work when the sun isn’t shining?
No they are lobbying the government to wind back the renewable energy target!
It’s no wonder that some people with solar panels are talking about disconnecting from the grid!
Your builder has given you a handover date . . . so you need to organise property insurance to start on that day.
How Much House Insurance Will You Need ?
Well you have only just finished building so isn’t the price you have just paid the right amount?
I think you need to add 30%-50% to the build cost.
Why Do You Need Extra Property Insurance?
Well building on a new development is cheaper and an entirely different proposition to having a house replaced when it is surrounded by other houses.
Here are some of the reasons for extra costs:
Demolition and removal of material from the site;
Once fences are built around the site and perhaps trees planted on the nature strip builders may consider the site ‘Restricted‘;
Gardens, and paths, which may have been excluded from the initial construction cost will have to be replaced;
The original builder may not offer the standard house you had previously built meaning architects may need to be engaged. (Even though you had a project house built you may find yourself up for a cost structure of a custom house)
Building regulations may change.
All these extras make it important to make sure you don’t under insure.
The costs of possibly over insuring are small, compared with having to deal with the trauma of loosing your home. . . . Then having a bill of tens, or even hundreds of thousands of dollars, to replace the house.
Sarking is the sheet material which can be put over the roof trusses before the final roof covering is installed.
It’s normally standard on a metal roof as it prevents condensation on the underside of a roof from dropping onto the ceiling below.
In the case of a tiled roof it helps with weatherproofing and keeps dust out of the roof space.
In bushfire zones it is mandatory for a tiled roof to have sarking.
The reflective sarking (installed reflective side facing down) does help in reducing summer heat being radiated into the roof space and can help to keep the house warmer in winter. (See Reflective Finishes for more information)
In addition to plain sarking you can get an insulation blanket with sarking attached. This offering some sound insulation, for rainfall, and extra thermal insulation.
These days all the builders provide, at our cost, a 1.8m high ‘Security Fence’ around the site.
When you ask them “Why is it there? “. . . They say “Its for Occupational Health and Safety and/or to prevent theft. ”
If those are the reasons why do less than 1% have a padlock?
For most of them the highest security level is a piece of wire twisted around a couple of times!
The only positive thing I can say about all this is the lack of security makes it easier for me to access the site in the evening to check whats happened during the day!
For more posts about your new home build see Construction
