Households can expect to be paying about $120 (or 9%) less for electricity in 2023 than they do today, the AEMC’s latest annual residential electricity price trends report shows.
The 2020 report examines the direction household electricity prices will take over the next 3 years and what’s driving that direction. It has found for the second year running that prices will continue to fall. The main reasons for the drop are lower gas prices and the uptake of renewable energy sources like solar and wind.
Reductions are forecast across the entire National Electricity Market (NEM), with a drop of more than $200 expected for households in South Australia.
Falling wholesale costs are the primary driver of the price and bill reductions, with the AEMC predicting that wholesale costs will drop by more than $150 (27.4%) during the period.
The Hon Angus Taylor MP, Minister for Energy and Emissions Reduction, said, ‘After what was a tough year for everyone, news that electricity prices are expected to continue falling in 2021 is a welcome relief.’
The Australian Government has outlined its expectations for the electricity sector to deliver 1,000MW of dispatchable energy before the coal-fired Liddell Power Station closes in 2023.