Wholesale electricity prices across the National Electricity Market (NEM) are plummeting to their lowest levels in the last nine years, and Australians are paying less power for their homes and businesses because of it.
New data from the Australian Energy Market Operator (AEMO) shows average quarterly wholesale electricity prices have fallen sharply to lows not seen since 2012.
According to AEMO’s latest Quarterly Energy Dynamics report, Victoria‘s electricity prices went from $79/MWh in 2020 to $25/MWh in 2021 – a reduction of more than 68 per cent.
Meanwhile, New South Wales’s electricity prices fell to $38/MWh from $86/MWh in the corresponding quarter in 2020, while Queensland averaged $43/MWh.
The report also showed quarterly electricity emissions in the NEM at their lowest. This year’s quarter emissions are currently at a total of 31.5 million tonnes of carbon dioxide equivalent, 9 per cent lower than the same quarter in 2020.
“Keeping the lights on at an affordable price for Australian households and businesses is one of the Morrison Government’s key focuses,” Minister for Energy and Emissions Reduction Angus Taylor said.
“Australians should not be concerned about the price of their energy bills, which is why we are working to ensure people are spending less on power and more on the things they love. This is particularly important as we rebound from the impact of COVID-19.”
Minister Taylor said the price fall of the electricity rates to nine-year lows is an outstanding result and demonstrates how effective the Government’s actions have been. In fact, there have been 19 straight months of wholesale price reductions in the previous year.
And with wholesale costs making up around a third of residential electricity bills and far more for industry, the Government expects these price falls to be passed on to Australian families and businesses.
Consumers can ensure they are getting the best deal by shopping around and accessing the most attractive offer for them.
Residential and small business energy customers can review the competitiveness of their current energy plans and find the best possible deal for their area using the Government’s free price comparator website.