Energy bill savings: Aussies to save $77 a year on electricity as renewables take hold


Australian families can expect to pay $77 less electricity In 2024, cheaper renewable energy lowers wholesale costs for service providers.

A new report from the Australian Energy Market Commission (AEMC) predicts that by June 2024 prices are likely to be below 26 cents a kilowatt-hour – their lowest point since 2017 and six per cent below today’s rate.

The report indicates lower and lower wholesale costs environmental The costs incurred by the wholesalers will see the savings passed on to the consumer.
Australian households can expect to pay an average of $77 less for electricity by 2024.

“This shows how smartly integrating renewable energy sources makes it possible to have lower emissions and lower costs for consumers,” AEMC President Anna Collier.

“We can now see enough in the future to be sure that consumer-paid energy prices will continue to trend downward over the next three years, despite the phased exit in 2022 and 2023 of the Liddell Power Plant, one of the largest coal-fired power plants Generators in the national electricity market.

“But as wholesale costs and environmental costs tend to decline, we are beginning to see increases in the cost of network investment, and this is likely to accelerate over the next decade as more network investment is required to connect the new, dispersed generation to the network.”

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The renewable energy that comes online will eventually help net household budgets. (Dorothy Woodgate)

A full analysis of how your national electricity market jurisdiction is expected to perform can be found below.

The report predicts that wholesale costs will drop by about $92 between now and fiscal year 2023/24, directly affecting the bill that reaches households’ mailboxes.

Wholesale costs represent about 35 percent of a representative customer’s bill across the national energy market.

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In the longer term, households are set to benefit from this, but there may be some increases in the next fiscal year. (AAP)

Despite the good news in the longer term, Collier said there could be some pain in the short term as prices are expected to rise about $20 a year in the next fiscal year with the shutdown of the coal-fired Liddell power plant.

“While we have just under 2,500 MW of generation expected to come off the grid over the next three years, there are approximately 5,500 MW of new large-scale generation and storage projects committed online over the same time period,” Collier said.

“This is in addition to 4,130 megawatts of new rooftop solar PV, which will also impact prices through reduced demand and through exports.”

AEMC’s projected electricity price moves by jurisdiction:

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Jurisdiction:

Electricity price change between fiscal year 21/2020 and fiscal year 24/23:

Average Annual Change:

Southeast Queensland

Decreased $126 (or 10 percent)

Annual decrease of 3.6 percent

South Australia

Under $35 (or 2 percent)

Annual decrease of 0.7 percent

Victoria

Under $99 (or 8 percent)

Annual decrease of 2.6 percent

New South Wales

Under $50 (or 4 percent)

Annual decrease of 1.3 percent

Australian Capital Territory

Over $77 (or 4 percent)

Annual increase of 1.3 percent

Tasmania

Under $125 (or 6 percent)

Annual decrease of 2.1 percent

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