The Australian Energy Market Commission has said national electricity prices should be expected to moderate over the next three years as a result of stabilising network costs and changes in carbon pricing.
The AEMC’s three-year forecast for residential electricity prices expects the national average annual increase in prices will be lower than expected level of inflation at 1.2 per cent a year from 2012-13 to 2015-16.
“Nationally we see falling pressure on prices coming from two areas, stabilising regulated network costs and changes in carbon pricing costs,” AEMC chairman John Pierce told media organisations.
“States and territories will see different price trends due to local conditions and varying government policies including the ongoing costs of closed premium solar bonus schemes.”
Mr Pierce said policies in Queensland, NSW, Victoria and South Australia allowed for market offers, offering people a choice to switch away from standing offers.
“People who exercised that choice in 2012/13 were able to save around 5-16 per cent by shopping around for the best deal.
“The discount depends on where consumers live, how much energy they use and how they prefer to manage their bills,” Mr Pierce said.
“Our analysis shows that across the nation, the regulated price is not the best offer available.”
The report analyses trends in the competitive market sectors of the industry; the regulated networks sector; and resulting from government environmental policies in each state and territory.
