Households in Western Australia could be facing electricity price rises of seven per cent each year for the next three years – and perhaps even more.

ABC reports the state’s new Energy Minister, Ben Wyatt, wants electricity prices to match cost.

“If you are not at [cost reflectivity] it costs the taxpayer a significant amount of money,” said Mr. Wyatt.

The Western Australian Government currently covers the shortfall and according to WA’s Department of Finance, it paid an estimated subsidy of $348 million in the 2015-16 financial year. The West Australian says the cost of providing electricity is up to 20 per cent above average household bills at present.

Given this support, whether electricity prices increase or not, the taxpayer still ultimately pays.

There have been regular price hikes for households and small businesses in the state for some years, sometimes twice in a single year.

• 2016 –  +3%
• 2015 – +4.5%
• 2014 – +4.5% not including the removal of the carbon component
• 2013 – +4% plus carbon component
• 2012 – +3.5% plus carbon component
• 2011 – +5%
• 2010 – +7.5%  and +10%
• 2009 – +10%  and +15%

Large businesses have also had their fair share of cost hikes, with energy increasingly cutting into their bottom lines and some rises being particularly brutal.

Even if prices only increase by 7% a year for the next three years for households and small businesses, the impact will be significant; with it working out to around a 23% increase over today’s prices.

The news will no doubt have some Western Australians who are yet to install solar panels more seriously considering turning their rooftops into bill-busting clean power stations, joining the estimated 223,000 who have already done so.

According to solar provider Energy Matters, a 5kW solar panel system installed in Perth  (without solar batteries) can provide a financial benefit of $1,507 – $1,771 a year at current electricity pricing levels and depending on energy consumption habits.

For larger businesses in Western Australia, a commercial solar power system can have a payback time of just 5 – 7 years, depending on the scenario.