They say there’s a first for everything, and the same goes for the energy market.
According to the Australian Energy Market Commission’s (AEMC) 2019 Residential Electricity Price Trends Report, electricity prices are expected to fall across the whole supply chain for the first time.
This means inputs costs that make up your bill such as wholesale costs, network costs and environmental costs will all experience a decrease from FY19 to FY22 - falling by $62, $11 and $21, respectively.
This is due to the fact that the country is expected to see a massive supply injection of around 5,000 MW, as well as a decrease in distribution costs, which will all have a positive impact on prices.
But despite the good news, AEMC Chairman, John Pierce has reminded Aussies that these figures should still be taken with a grain of salt.
“More supply puts downward pressure on prices. But it’s important to note that over a decade of analysis we have seen trends change sharply in response to factors such as sudden generator closures and implementation of new policies. As such, all price projections should be seen as just that, projections,” he said.
“Overall, a representative consumer will pay around $97 less than today by June 2022.”
South-East Queensland to experience the biggest decrease in electricity prices
Figures from the report revealed that during the FY19-FY22 period, households in South-East Queensland are expected to see electricity prices fall by $278, equating to an annual drop of 7%.
However in South Australia, prices are only estimated to fall by $27 or an annual drop of 0.5%.
In New South Wales, prices will decrease by $107 (annual drop of 2.8%), $53 (annual drop of 1.6%) in Victoria, and $93 (annual drop of 1.7%) in Tasmania.
And in Western Australia prices are projected to rise by $102, but this is a result on the different regulatory arrangements the state has.
Aussies urged to compare electricity plans
Even though a number of Aussie households across the country may notice a difference in their electricity bills over the next few years, the AEMC has still encouraged Aussies to shop around and switch to a better energy deal.
So if you’re ready to kickstart your search, enter your postcode below to check out the different energy plans in your area.