Renewables bring household energy prices down
The average household energy bill has dropped thanks to an uptake in renewable energy, the latest report from the Australian Energy Market Commission (AEMC) has found. Customers can also expect the trend to continue, with the AEMC estimating the average home will pay $77 less annually for their power than they do now.
The AEMC’s 2021 annual residential electricity price trends report highlights that lower wholesale costs and reduced environmental costs in most regions are continuing to bring electricity prices down, with 2024 prices likely to sit at their lowest levels since 2017.
“This illustrates how integrating renewables in a smart way makes it possible to have both lower emissions and lower costs for consumers,” AEMC Chair Anna Collyer said.
Although wholesale costs have already fallen this year, the AEMC expects those prices to fall further over the next three years, resulting in savings for customers. Wholesale energy prices make up around 35% of the representative customers' power bill across the National Energy Market.
Environmental costs, which have seen a steady rise over the last decade, are also likely to see a drop from the 2022-2023 financial year, however network costs are likely to increase across both transmission and distribution grids.
The report finds that homes in South East Queensland are likely to see the biggest energy savings by 2024, with an estimated 10% drop of around $126. South Australians are likely to see the smallest drop in prices, but will still see a 2% drop equating to roughly $35 in savings.
- Victorian electricity prices are estimated to fall by 8% or about $99 (an annual average drop of -2.6%)
- NSW electricity prices are estimated to fall by 4% or about $50 (an annual average drop of -1.3%)
- ACT electricity prices are estimated to rise by 4% or $77 (an annual average increase of 1.3%)
- Tasmanian electricity prices are estimated to fall by 6% or $125 (an annual average drop of -2.1%)
- South East Queensland electricity prices are estimated to fall by 10% or $126 (an annual average drop of -3.6%)
- South Australian electricity prices are estimated to fall by 2% or just over $35 (an annual average drop of -0.7%)
The AEMC notes that they’re focusing on making the most out of renewables, including minimising network investment costs to bring clean energy into homes and reduce household power bills.
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