Electricity and gas prices at their lowest in five years, says AER
For many Aussies, staying on top of the latest news updates can often leave us feeling disheartened and unsure about the future.
But according to new figures from the Australian Energy Regulator (AER), there might be a glimmer of hope for households looking to save money.
The AER Wholesale Market Quarterly report reveals that wholesale electricity prices are at their lowest since the 2014/15 financial year, ranging between $56 per MWh in Queensland and $84 per MWh in Victoria.
AER chair Clare Savage says the reason for the sharp fall was the result of lower fuel costs for generators and a notable increase in renewable energy generation with large-scale solar and wind power.
The combination of both renewable sources to the total generation increased from 6% to 13% over the last three years, while coal contribution has dropped from 77% to 71%.
The report also found that there was a lower demand for the grid during summer, as more households are choosing to meet their electricity needs by using rooftop solar.
These results correlate with earlier findings by the Australian Competition and Consumer Commission (ACCC) which found that since the Covid-19 pandemic began, both wholesale electricity and gas prices experienced a drop.
"It is pleasing to see some energy retailers have responded to the lower wholesale prices by offering new deals to their customers. Energy companies must put energy consumers first especially as many struggle with the impact of the COVID-19 pandemic,” said Energy Minister, Angus Taylor.
However, the report also noted that it could still take a while for these lower prices to be reflected in a household’s annual bill.
This is because retailers and generators enter into contracts in order to manage the risk of fluctuating prices and some contracts may have been started when prices were higher than now.
But that doesn’t mean Aussie households should have to wait around to see a difference in their energy bill.
You can use our energy comparison tool to compare energy plans that are available in your area. All you need to do is answer a few questions about your household’s usage and you’re on your way!