Most Australians will be paying less for electricity by mid-2021, as renewable energy sources connect to the national electricity market.
Nine million customers supplied by the national wholesale electricity market will be better off, while consumers in Western Australia, the Australian Capital Territory and the Northern Territory may see a slight rise.
Labor announces $15 billion to 'turbo charge' renewables sector
The 's annual report on electricity prices forecasts the average Australia's electricity bill to be 2.1 per cent lighter in June 2021 than it was in June this year.
That reflects a saving of about $28, as the average bill falls from $1367 to $1338.
Renewables drive down costs
CSIRO chief energy economist Paul Graham said large-scale electricity projects will drive falling prices over the next two years.
"As we're building more renewables, that's starting to bring down the cost of electricity, and we're going to see that continue," he told SBS News.
READ MORE
The ultimate dip comes as more renewable energy is being generated, helping to drive down wholesale prices.
Those savings are due to offset rising costs in other parts of the electricity supply chain and comes as demand for power remains flat.
Each region, however, faces different supply chain factors which affect prices, with the AEMC expecting slight price rises in WA and the NT - which are not part of the national electricity market.
NSW at loggerheads with federal government on renewables
Prices in the ACT are also estimated to increase, as a result of rising environmental and network costs.
The Renewable Energy Target policy, which is responsible for the pipeline of wind and solar projects, will not be extended by the federal government after 2020.
The New South Wales government said it is not waiting for the federal government and will push ahead with its promotion of renewable energy.
"We need to end the climate wars in Canberra between all the various parties, and the state governments and the territory governments are prepared to show leadership on this."
AAP
'Balancing market restructures critical'
Commission chief executive Anne Pearson said the challenge for Australia's energy sector going forward will be balancing supply and demand as the market restructures.
Keeping down costs for connecting new generation will also be difficult, Ms Pearson said.
"Our report shows networks account for around half of consumer bills. Managing the costs of connecting new generation will be a major challenge," she said.
READ MORE
"We must avoid over-engineered solutions to stop gold plating and price spikes."
Governments and regulatory bodies should focus on long-term planning for the market, particularly low-cost solutions to the transitions under way in the sector.
There also needs to be greater certainty in wholesale markets through more effective management of environmental and security costs, and a more integrated, modernised power grid.
Open and transparent price-setting for customers is important to encourage competition among energy providers, Ms Pearson said.
Source AAP - SBS
