According to annual reports published by Energy Consumer’s Australia and the Australian Energy Market Commission: Small Medium Enterprises (SMEs) and residential users will enjoy lower energy prices over the next few years. Some changes in the energy supply chain are affecting electricity prices for both end-users.
On average, power costs for SMEs were 3% lower compared to last year. The report also revealed that electricity prices dropped significantly in NSW (5%), ACT (6%), QLD (8%), SA (9%), and Tasmania (1%).
The entry of new energy producers in these states helped lower power rates.
However, small businesses who were still using gas saw higher bills compared to last year. SMEs in SA (3%) and VIC (5%) experienced the biggest increase. In contrast, NSW’s small business owners saw an 8% reduction on their power bills.
Lynne Gallagher, Energy Consumers Australia’s CEO, welcomes the positive news. She said that “Lower prices are largely being driven by falls in the wholesale price, but where we’re seeing lower prices, we’re also seeing more competition which is a positive sign.”
CEO Gallagher also said that the entry of new power producers helped reduce electricity market prices. “This is particularly important in the context of the national economic recovery from the pandemic because lower costs for business give us the best chance of creating jobs and economic opportunity,” Gallagher added.
You can learn more about the SME Retail Tariff Tracker here.
AEMC Report: Lower Household Electricity Prices for the Next 3 Years
Meanwhile, AEMC’s 2020 report revealed a $120 or 9% reduction in electricity bills for residential users over the next three years. Their latest annual report also shows that prices will continue to fall in the second year. This was brought about by the increase of renewable energy power producers and the decrease in fuel prices.
South Australian households can expect a $200 reduction on their electricity bills based on AEMC’s forecast. Wholesale costs are dropping by more than $150 (27.4%), which makes it the primary driver for the pricing trend.
Minister for Energy and Emissions Reduction, Hon. Angus Taylor MP welcomes the good news. He said that “It’s a welcome relief after going through a tough year.”
Meanwhile, the Australian Government expects a 1,000MW dispatchable energy solution from the energy sector before the closure of the coal-fired Liddell Power Station in 2023.
Role of Renewable Energy and Energy Efficiency in Lowering Energy Costs
3E group is championing the switch to renewable energy resources such as Solar PV. Realising Australia’s need to reduce its carbon footprint, we couple solar PV with energy efficiency upgrades to help organisations maximise their return on investment whilst lowering their energy costs and carbon emissions.
For assistance with your next energy efficiency or Solar PV project, give us a call 1300 55 77 64 or book a free phone appointment today