Household power prices are set to fall in most Australian states over the next few years, with QLD consumers to benefit most, according to a report from the AEMC.
The Australian Energy Market Commission (AEMC) predicts that electricity prices will fall consistently until the end of 2022, with only NT and WA missing out.
It’s the investment in wind, solar and batteries that will work together to offer consumers enough electricity at the lowest possible costs. Lower distribution costs as well as cheaper large-scale generation certificates are also helping.
It’s the increase in renewable power that’s helping most
There’s no new investment in gas or coal power generation, so all the changes in prices are down mostly to the influx of renewables.
The AEMC report predicts that SE QLD will see the biggest reductions – 20% by 2022, which is a saving of $278 on the average household bill.
Elsewhere in Australia, NSW will see an 8% fall ($107), Victoria 5% ($53), ACT by 7% ($134), Tasmania by 5% ($93) and SA by 2% ($27).
Western Australia will see a rise of up to 6% ($102) because of increased gas costs.
These projections aren’t written in stone
AEMC chairman, John Pierce, said the forecasts were derived from an expected rise in power supply of almost 5,000MW over the next three years. More supply exerts downward pressure on prices, and combined with the increase in microgrids and neighbourhood power sharing, households will see lower bills.
However, there’s always the chance of new policies or of unexpected power station closures, which could send prices the other way. While the projections look good, the reality may fall a bit short, which in areas like SA could mean, in practice, no reduction at all.
New generation coming online
The AEMC report also detailed the commitments to new generation that the country will see, including an additional 2,338MW of solar and 2,566MW of wind power.