Household electricity bills are expected to fall

Marco Green
December 9, 2019

About 5,000 megawatts of new generation have entered the network, including significant investments in renewable energy, while demand has remained stable.

An annual report released by the AEMC shows falling electricity prices over the coming years, with a three year period modelled by the report indicating that consumers would save $97 on electricity bills out to 2022.

"But it's important to note that over a decade of analysis, we have seen trends change sharply in response to factors such as sudden generator closures and implementation of new policies", said Pierce. "As such, all price projections should be seen as just that, projections".

The Australian Energy Market Commission puts the 7.1 per cent drop down to a rapid influx of renewable energy, falling network costs and the scheduled abolition of the Renewable Energy Target.

"The big stick legislation, the retail reliability requirement, the Grid Reliability Fund and the Underwriting New Generation Investments program are all created to put downward pressure on wholesale prices and provide a more reliable supply.to the network to ensure the reliability, 24/7 and affordable power that Australian families and businesses deserve". That's a saving of approximately $278 annually for the average household.

This drop shouldn't be anticipated for Western Australia, the place annual payments are estimated to be $100 costlier.

Environmental scheme costs are set to fall by $24 while other fees including retail margins are set to cost $94 less.

"The Government has carefully built a range of levers and tools to lower energy prices and increase reliability in a rapidly changing (national energy market) to ensure the lights stay on".

Increases in electricity prices have substantially outpaced both increases in wages and the consumer price index.

Chairman of AEMC John Pierce said that it's important to realise the forecasts reflect a huge injection of nearly 5000 megawatts of new power supply across the nation for the next three years.

Due to the different dynamics in different states, the price reductions driven by renewables investment varied from state to state, but most households should experience some price relief over the next couple of years, according to the AEMC's forecast.

"Overall, a representative consumer will pay around $97 less than today by June 2022".

As "no two households use energy in the same way", AEMC encourages users to shop around to get the best deal for their circumstances through government comparison sites.

Knowledge estimates from the AEMC additionally exhibits 6pm to 8pm continues to be the most costly time to make use of electrical energy in New South Wales, Queensland, Victoria and South Australia.

Other reports by Click Lancashire

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