Your power bills are set to drop, with the cost of electricity forecast to decrease significantly in every state and territory over the next three years, says the Australian Energy Market Commission (AEMC).
Except in Western Australia.
However, before pleasure there will be more pain, with power bills set to peak in 2019/2020 before they start going down.
Power bills should fall from the current average of $1377 to $1273 in 2022, saving most Australians an average of $97 a year.
South-east Queenslanders should benefit most with savings of up to $278 a year.
Prices in NSW should fall by eight per cent, in Victoria by five per cent and in the ACT by up to seven per cent. Tasmanians could expect to save around five per cent and South Australians two per cent. The Northern Territory only recently switched to independent generators and was not included in the assessment.
Due to increased gas costs, West Australians will pay around $102 more for power by 2022.
“While the overall national trend is down all across the supply chain, there are regional differences across states and territories that will affect price outcomes,” said AEMC chairman John Pierce.
“Overall, a representative consumer will pay around $97 less than today by June 2022.”
The drop in electricity prices can be mainly attributed to more investment in renewable energy such as batteries, wind and solar and increases in generation capacity, particularly wind farms.
“These results for FY19 to FY22 point to the state of the market over this specific period, which will see significant injection of around 5000 MW of new supply,” said Mr Pierce.
The report also found that the most expensive time to use electricity in NSW, Queensland, Victoria and South Australia is between 6pm and 8pm.
Despite promises of cheaper power bills, the AEMC maintains that “no two households use energy in the same way” and consumers should shop around to get the best deals.
Are you happy that power bills will drop in the next year or so?
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