An independent government report has predicted power bills should start to ease in the eastern states from the second half of 2018 as new generation capacity enters the market and eases prices.
The Australian Energy Market Commission (AEMC) annual residential Electricity Price Trends report forecasts electricity prices across the east coast should fall by between 5 to 7 per cent in the 2018-19 financial year and fall even further in the following year. The report predicts electricity prices will increase in 2018-19 in WA, the ACT and the Northern Territory.
The report bases its east coast price predictions on around 4,900MW of new renewable generation, equivalent to more than 40 wind and solar farms, entering the market by 2020. This is predicted to have the effect of easing wholesale electricity prices which have been the main drivers of recent increases.
Australian Energy Council Chief Executive Matthew Warren said “the report is welcome news for households and businesses, and suggests that we may have hit a price peak for electricity in eastern Australia.
“Increased renewable generation is welcome and a key part of the re-build of the grid this century. We still need to push through with national policy reforms to ensure we make these changes sustainably and reliably, so that costs don’t spike again when the next round of older power stations exit the market.”
About the Australian Energy Council
The Council represents 21 major electricity and downstream natural gas businesses operating in competitive wholesale and retail energy markets. These businesses collectively generate the overwhelming majority of electricity in Australia and sell gas and electricity to over 10 million homes and businesses.
Media contact Carl Kitchen 0401 691 342
The Australian Energy Council has welcomed the release of the Energy Security Board's options paper,which is the result of a substantial consultation process.
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