Cheaper energy bills on the horizon for most Australians

Household energy bills are expected to drop over the next three years, with future power prices set to fall to their lowest since 2017.

A new report by the Australian Energy Market Commission (AEMC) revealed that most residents will be paying around $77 less in electricity costs per year – a decrease of about six per cent by 2024.

The AEMC predicts that lower wholesale electricity prices and falling environmental costs in most regions will help bring bills down.

As more renewables become readily available, there’ll be better outcomes for the environment as well as consumers, AEMC Chair Anna Collyer explained.

“This illustrates how integrating renewables in a smart way makes it possible to have both lower emissions and lower costs for consumers,” she said.

This is despite a number of coal-fired power stations being phased out over the next decade.

“We can now see far enough into the future to be confident that power prices paid by consumers will continue to trend downwards over the next three years, despite the staged exit of Liddell power station in 2022 and 2023, one of the biggest coal-fired generators in the national electricity market.” Ms Collyer said.

“But while wholesale costs and environmental costs are trending lower, we are starting to see increases in the cost of network investments, and this is likely to accelerate over the next decade as more network investment is required to connect dispersed new generation to the grid.”

While the AEMC’s report indicates a drop for the majority of consumers, an annual bill increase of $20 is expected during the 2022-23 financial year, as the Liddell plant exits the energy system.

The AEMC also found that network costs are tipped to rise by about $31 until 2024 across all distribution zones. Network costs are charges associated with maintaining the grid, including power that’s supplied to homes via the poles and wires.

Compare Energy Providers

Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Queenslanders tipped to be the biggest winners

The AEMC’s 2021 annual residential electricity price trends report unveiled that south-east Queenslanders are tipped to benefit the most from now until 2024. Households on the Energex network can expect their yearly bills to drop by 10 per cent or $126 – the lowest in more than a decade.

What about the rest of Australia?

Hot on Queensland’s tail is Tasmania and Victoria, with annual electricity prices estimated to drop by $125 (6%) and around $99 (8%), respectively, over the same period. Yearly bills in New South Wales are predicted to fall by about $50 (4%), while South Australians can expect an annual decrease of more than $35 (2%).

Bucking the trend is the nation’s capital, where Canberrans will have to settle for an estimated rise of $77 (4%).


Image credit: Steve Lovegrove/Shutterstock.com

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