Energy bills set to power down

 

Power prices are set to plunge across southeast Queensland over the next two years with an influx of solar and wind generation saving customers hundreds of dollars.

The Australian Energy Market Commission projects a typical bill will drop $144 or nearly 11 per cent this financial year, followed by a further saving of $74 in 2021-22.

The savings will reduce typical annual residential bills from $1334 down to $1116 across the two years.
However the energy regulator expects bills to rise slightly in 2022-23 to $1144 due to increased generation costs when the Liddell coal-fired power station in NSW shuts down.

AEMC chief executive Benn Barr said the modelling demonstrated that new electricity generation was driving down prices and that network regulation worked for consumers.

The winds of change are blowing for southeast Queensland power bills.
The winds of change are blowing for southeast Queensland power bills.

"It's great to see prices falling because at the AMEC what drives us is how to keep the lights on and costs down in a decarbonising power system," he said.

He said the national energy market was undergoing "transformational change" and trends could "change sharply in response to new policies and sudden market changes".

The main drivers of lower power bills in Queensland were steep falls in wholesale and network costs over the next three years, according to the report.

The wholesale cost of generating electricity was expected to fall 35 per cent or $190 across the three years as a result of more solar and wind power and lower gas prices.

Network costs - poles and wires - were projected to fall about 2.2 per cent each year.

But some of those gains were set to be eroded by a sharp jump in environmental costs which will add about $30 to bills by 2022-23.

 

Australian Energy Market Commission chief executive Ben Barr is driven by keeping the lights on and costs down.
Australian Energy Market Commission chief executive Ben Barr is driven by keeping the lights on and costs down.

The increase was attributed to the Queensland Government's reintroduction of the solar bonus scheme from July1 this year.

Energy Minister Angus Taylor said the government was committed to lowering power bills and was attempting to reduce costs to consumers from the planned closure of Liddell.

"To protect families and businesses against the risk of price rises, the Government has outlined its expectations of the electricity sector to deliver 1,000 megawatts of new dispatchable energy before Liddell closes in 2023," he said.

The report found further savings of up to $213 were possible for 39 per cent of southeast Queensland customers tied to expensive standing offers if they shopped around for better market offers.

 

 

 

Originally published as Energy bills set to power down


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