Finally, Electricity prices to drop over the next two years

It seems we’re in for some Christmas cheer in the form of some rare good news about power bills.

Electricity prices are expected to fall by an average of 6.2 percent each year for the next two years starting from July, according to the latest electricity trends reports released today by the Australian Energy Market Commission (AEMC).

3 ways to save:

Victorians are expected to experience the biggest fall in prices by 8.2 percent a year between 2018 and 2020, but not before copping a price increase of around 15% next month.

The AEMC is also predicting a drop of 7.3 percent in South Australia, 7.1 percent in Queensland, and 6.6 percent in New South Wales.

However, Western Australia is forecast to experience a 6.3 percent increase in current electricity bills.

Predicted Electricity Price Changes 2018-2020 (Source: aemc.gov.au)

STATE 2018-2020 CHANGE
NSW 6.6% DECREASE
QLD 7.1% DECREASE
VIC 8.2% DECREASE
SA 7.3% DECREASE
WA 6.3% INCREASE

AEMC chairman John Pierce said this year’s report showed wholesale electricity costs were now the single biggest driver of change in residential electricity bills, compared to previous reports which found network costs were the main driver.

Extra supply provided by wind and solar is another contributor to the predicted price drop, however the AEMC warns the government must continue to refine its energy policies to ensure these price reductions occur.

“It’s welcome news for households and businesses in Australia, we’re finally seeing some relief potentially from rising electricity prices,” says Matthew Warren, Australian Energy Council.

* In highlighting particular offers we are not making specific recommendations as this article does not cover all available products and may not compare all features relevant to you. Any advice provided is general in nature and does not take account of your needs, objectives or financial situation. Individuals should consider their own circumstances, and if in doubt seek appropriate advice, before proceeding.