Power bills set to be slashed in almost every state and territory

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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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Written by Leon Della Bosca

Leon Della Bosca is a voracious reader who loves words. You'll often find him spending time in galleries, writing, designing, painting, drawing, or photographing and documenting street art. He has a publishing and graphic design background and loves movies and music, but then, who doesn’t?

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101 Comments

Total Comments: 101
  1. 0
    0

    Homeowner/occupiers should consider solar with zero deposit, & cheap monthly repayments over 3 years, by using the power savings of up to 80% as the repayments. Then they can control their own power production & consumption easily.

    • 0
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      Exactly right, the internal rate of return for Solar is approximately 18%.

    • 0
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      Unless you are home during the day solar is useless with the pittance you now get for your feed in.

    • 0
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      Wrong VCB, appliances today enable you to run them whilst you are not home, e.g. dishwashers, washing machines, etc.
      I get 11.6 cents FIT and am $238 in credit. haven’t had a bill for 4 years.

    • 0
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      Gee you are game running those appliances while not a home. A friend of mine did that and their washing machine flooded their house resulting in a repair bill of iver $60,000. They were unconvinced for many weeks.

      My FIT is 22c but it doesn’t make much difference to my bills as I use nearly all my solar myself as I can’t see the benefit of having spending thousands to benefit the supply authority more than me.

    • 0
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      the only sad thing is that there no way for unit owners to take advantage of this, I live on the top floor but the committee has refused my request.

    • 0
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      I live solo, in small 3BR home, have a small solar system, with feedback rate of 56c. For years I have kept an Excel spreadsheet of my power bills and have noticed the following.
      1. Worked FIFO for 4 years – 2 weeks on, 2 weeks off. My power bill averaged $140 a quarter.
      2. Finished FIFO – worked normal 9-5 job. My power bill averaged $100 a quarter.
      3. Now retired – home far more. So TV, computer, power usage due to hobby, air con on more (hot Qld). My power bill averages $12 per quarter. Over last 2 year period.

      I thought my power bill would be low doing FIFO, (being away totally for 2 weeks at a time), but it was actually higher. The more I am home, the lower the bill.

    • 0
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      “They were unconvinced for many weeks.” Moron.
      I’m also unconvinced.

    • 0
      0

      A quote from a site discussing the viability of solar in the USA:

      “In some parts of the country, you can pay as little as 8 cents per kWh; in others, you’ll pay 20 cents or more.”

      According to this, panels should be viable here, with rates much higher than even the maximum quoted for the US.

      My 3 Kw system was installed in February 2012 at a cost of $9000+ and has produced 30600 units to date. At an average of 27 cents per unit, it has produced electricity to the value of $8262 but in future the return will be less as the FIT has now dropped to around 11 cents from a pervious average of around 27 cents.

      In future, after for allowing for depreciation and maintenance, my electricity provider will obtain more benefit from my panels than I do.

      As for batteries, currently they are totally unviable, as the people of South Australia will discover in a few years.

    • 0
      0

      A quote from a site discussing the viability of solar in the USA:

      “In some parts of the country, you can pay as little as 8 cents per kWh; in others, you’ll pay 20 cents or more.”

      According to this, panels should be viable here, with rates much higher than even the maximum quoted for the US.

      My 3 Kw system was installed in February 2012 at a cost of $9000+ and has produced 30600 units to date. At an average of 27 cents per unit, it has produced electricity to the value of $8262 but in future the return will be less as the FIT has now dropped to around 11 cents from a pervious average of around 27 cents.

      In future, after for allowing for depreciation and maintenance, my electricity provider will obtain more benefit from my panels than I do.

      As for batteries, currently they are totally unviable, as the people of South Australia will discover in a few years.

  2. 0
    0

    Figures above very hard to understand. Above says the average annual power bill is $1377 – and says “South-east Queenslanders should benefit most with savings of up to $278 a year”. A 20% drop? – I’ll believe that when I see it.

  3. 0
    0

    So that’s a definite of a perhaps maybe ? This is proof of how they hold us voters in contempt !

    • 0
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      You have some cause to be wary Spud, the cheaper Renewable electricity has been coming into the Grid for some time now but savings not passed on.
      Good on the AEMC for making definite amounts available so us everyday folk can start asking our suppliers where are our discounts.
      Otherwise they would just greedy it all up and give us nothing.
      The interesting thing is that all that renewable generated electricity is going in despite the current political party doing their damnedest to stop it.
      I bet Morrison gets up on his hind legs and brays how he is helping Australians get cheaper electricity, or words to that effect, however the only Govt. support has come from the states.

    • 0
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      So there is a define maybe that prices will be cheaper in two or three years time. Begs the question of how much prices will rise in the next two years!

    • 0
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      Cheaper renewable energy? In 2014 when Australia relied upon coal to generate electricity, the Australian Energy Council listed Australia as a country with low prices, with 21 countries having more expensive electricity and 11 where prices were lower.

      The current Global Petrol Prices site shows only 12 countries with more expensive power than Australia, and 103 countries where power is cheaper. Worse, when this chart was prepared average prices in Australia were listed at 25 cents, a figure that has risen substantially since renewables are replacing coal, another site now has Electricity in South Australia and Victoria listed as the most expensive in the world.

      Analysis of the data which is presented indicates that all of the countries where prices have skyrocketed are switching to renewables to generate electricity.

      For reasons beyond my comprehension, although I will “Post Reply” once, the post will appear twice.

    • 0
      0

      Cheaper renewable energy? In 2014 when Australia relied upon coal to generate electricity, the Australian Energy Council listed Australia as a country with low prices, with 21 countries having more expensive electricity and 11 where prices were lower.

      The current Global Petrol Prices site shows only 12 countries with more expensive power than Australia, and 103 countries where power is cheaper. Worse, when this chart was prepared average prices in Australia were listed at 25 cents, a figure that has risen substantially since renewables are replacing coal, another site now has Electricity in South Australia and Victoria listed as the most expensive in the world.

      Analysis of the data which is presented indicates that all of the countries where prices have skyrocketed are switching to renewables to generate electricity.

      For reasons beyond my comprehension, although I will “Post Reply” once, the post will appear twice.

    • 0
      0

      Maybe you are double-clicking instead of doing a single click. A single click cannot post twice.
      BTW, great post, thanks.

  4. 0
    0

    I have been getting PFIT since 2010 in Vic and it runs out in 2024 but I have been paying way above my neighbor who has no solar since day one . Yes I’ve checked around but the moment you mention PFIT they tack on at least the retail FIT they pay( 6.5 cents) if not more .

  5. 0
    0

    Bull S.under a Liberal Government it will not happen just look at the last seven years.

    • 0
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      My thoughts exactly Floss except I do not restrict them to Liberal only, Labor are just as sneaky. I place more credence that Brisbane will have a snow this Christmas than power prices will come down in three years. Heard all these types of predictions before but they rarely, if ever, eventuate.

    • 0
      0

      Agree entirely Floss – well said.

    • 0
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      My power rates have already decreased under the Liberal Government.

    • 0
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      Bullshit, Bear.

    • 0
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      In an alternative universe VCBB but not the one we live in.

    • 0
      0

      It is nice to have power bills less than $200 a quarter now thanks to the LNP.

    • 0
      0

      I am with you, te libs are all for selling everything, if there was ownership in the banks, Telstra and Qantas, just to name the main ones there would be $$$$$ for all, but no OUR property is sold for plastic trinkets and shiny mirrors for the natives. POwer would be under the control of one company and prices controlled now there seems to many companies all with their boards sucking away and shareholders, while this is in place there will never be cheap power, unless you are lucky to live in house unlike me, then the government can bring in regulation, you know at one time it was against the law to have a water tank in Sydney, we are at the government mercy. hmm did somebody touch a nerve 🙂

    • 0
      0

      and how have the LNP reduced your bills to under $200 a quarter Big Bear? Out of interest, what were they before?

    • 0
      0

      “Power prices slashed” wow sounds great, unfortunately its total BS… $97 a year, be still my heart!!

  6. 0
    0

    Hooha and bullshit I don’t believe one word .its just to soothe the minions and direct their attention from other serious issues that this goverment have caused.

    • 0
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      While I agree, if this Government appears to do anything, its a distraction, but I wonder why they are then crediting renewables as the reason?

    • 0
      0

      OTB, the AEMC is not under the close supervision of the Govt. of the day, they are part of the Govt departments who are tasked with planning Australia’s future needs, in their case
      electricity.
      They are constricted by the current govt. to a degree, but long term plans and actions come to fruition, – if the govt of Australia did not have such departments, the current govt would never do anything.
      This information on cheaper power has been in the public domain for quite some time, but it could be argued that they haven’t told everybody, so now they are.
      Morrison is probably just as surprised as you are, it was definitely not what he wants, but the Abbot govt has made it a lot less than it would have been, – indeed they have finally slowed down the renewable electricity constructions so not much more will be coming in next year unless more coal fired power stations close.
      Thankfully they can’t stop old expensive to run machinery wearing out.

    • 0
      0

      Absolute BS!! this govt came in promising reductions and NOTHING has materialised except a few useless comparison sites. Decrease soon?, 3 years is soon?, it should be now and substantially not $79 which is diddly squat! The utilities situation in Australia is outrageous brought about by both sides of government and now seems to be unfixable. Not everyone can afford solar panels.

    • 0
      0

      lots of angst and frothing over electricity prices but how is this a federal problem Tood? Yes there is a national market of sorts but energy is a state issue.

    • 0
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      Simple Farside, it becomesa Federal problem when they start trying to take credit for a price reduction thatvwill not happen. It becomes federal problem when they try to put pressure on power companies to keep under performing coal fired power statins on line, or try to force them to build new ones that do not stack up economically.
      It seems the government will take credit for good stste innitiatives but will run a mile when its interference cause failures.
      They are banking on coal sales to meet their fake surplus target that is the only reason they want to support old technology.

  7. 0
    0

    We were promised $300 P/Year in S.Aus last election . Now they say 50 cents a day . That means one Coffee P/Week .
    Sadly we will NEVER see prices return to old price .
    Just wait until more Factory & Business go to the wall
    Yes you can have Solar & you will benefit but around the mid 80 AGE mark not sure will see it out to gain

  8. 0
    0

    Under the privatised model prices will never come down.Look at private health insurance.

  9. 0
    0

    Ha. What have we been saying for years? Renewables…
    And no, not the panels on your roof (although they do help) but wind energy to replace fossil fuel energy, and batteries. Batteries help the grid coast over peaks, so the system doesn’t have to endure large peaks. So we dont need to have a large wasteful grid, in case…

  10. 0
    0

    Does anyone have any deeper insight re the WA situation please. We have more gas over here in WA than nearly everywhere else on the planet yet we are paying more

    • 0
      0

      My thoughts exactly. Why does WA not get any perks yet again?
      Will be chatting to our local MP about this. We try to be as sparing as
      possible these days with our Electricity.

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