Household electricity prices are set to fall across the National Electricity Market (NEM) on the back of lower wholesale electricity costs and an increase in renewable generation according to the Australian Energy Market Commission (AEMC).
The Residential Electricity Price Trends 2021 report from the AEMC said electricity costs to consumers are expected to decrease this financial year and fall further by 2023-24.
It found the average residential customer in the NEM will save $77 a year, or 6 per cent, on their electricity bill by 2024 compared with costs in 2020-21.
Falls are expected across all jurisdictions in the NEM, apart from the ACT where prices are expected to rise, largely driven by the increasing cost of the ACT government’s high-priced renewables contracts.
State by state electricity bill changes between 2020/21 and 2023/24 are:
- QLD decrease by 10 per cent (or $126)
- NSW decrease by 4 per cent (or $50)
- ACT increase by 4 per cent (or $77)
- VIC decrease by 8 per cent (or $99)
- SA decrease by 2 per cent (or $35)
- TAS decrease by 6 per cent (or $125)
Minister for Industry, Energy and Emissions Reduction Angus Taylor said the results are good news for households as Australia recovers from the impacts of the COVID-19 pandemic.
“Further falls in electricity prices will put more money in the hip pockets of families and households, critical as we recover from the impact of COVID,” Minister Taylor said.
“Importantly this report shows that the government’s support for new on-demand dispatchable generation, like Snowy 2.0 and the Hunter Power Project gas generator at Kurri Kurri, will put downward pressure on prices as aging thermal generation retires.
“Consumers are at the centre of our approach to energy. Our actions have supported a 10 per cent drop in household electricity costs under this Government – that’s 11 quarters in a row of falls in year-on-year household electricity costs across the country.
“Labor’s record is a doubling of household electricity costs, which rose every single quarter, 23 quarters in a row.
“The Morrison Government will continue to take the necessary steps to safeguard the delivery of affordable and reliable power, and ensure Australian households and businesses get a fair deal on energy.”
Australian families are urged to continue to shop around using the Government’s free energy price comparison website Energy Made Easy to find the best deal for their current situation.