7/2/2023 0 Comments Iview markets![]() ![]() ![]() She said current forward contracts, which the regulator would take into account for the next default market offer period, are at a "similar price to where we are today". With inflation starting to ease, many are wondering whether energy prices will follow suit.Ī volatile global energy market makes it difficult to predict where prices are headed in the next 12 months, Ms Savage said. "The cost of almost everything in the country can be impacted in rising electricity costs." When will energy prices go down? "So the cost of delivering here may be higher compared to places like Sydney or central Brisbane." "These costs are different depending on where you live," Ms Reeve said.įor example, she says if you live in far western New South Wales, the wires are typically longer here, with not as many people using them. Ms Reeve says it boils down to one component that makes up part of your electricity bill: the cost of building and maintaining electricity poles and wires. This is because they're set by different bodies, so their figures will be made clearer in the coming months. However, Victoria's Essential Services Commission (ESC) will also lift prices by 25 per cent.Īround 400,000 Victorian households and 55,000 small business customers are on that state's default offer, according to the ESC.Īs for the remaining states and territories, we don't have the estimates for them yet. The AER's decision will directly affect more than 600,000 customers across these places. It is only customers who are on the default offer in these areas: Not every person's bills will go by 20 to 25 per cent. "It's there to make it easier for people to compare their plans," Ms Reeve says. The second reason: I t offers a single point of reference, making it easier to compare between retailers. "If you're not getting extra bells and whistles from your electricity retailer, then this is what the regulator says is a reasonable price to pay for electricity," Ms Reeve says. It's purpose is twofold, says the Grattan Institute's deputy energy director Alison Reeve. So one customer might pay X amount for power during a particular time of day and Y amount for another timeslot, while another customer might just pay the same price for power regardless of the time.Ĭustomers will typically go on a company's default plan unless they choose a different plan. This means there's no one set price for electricity in these areas. In states where there are multiple energy companies competing with each other to supply power to customers, they might offer a range of different contracts or plans for power prices. It's the maximum price energy retailers can charge their customers who are on default contracts. That's higher than its estimate from March, when it was between 20 and 22 per cent. It said electricity prices in some states would increase between 20 and 25 per cent from July 1. This week, the regulator announced its default market offer for the next financial year, which impacts power prices in the states it covers. The answer starts with the Australian Energy Regulator (AER) - the regulator of the wholesale electricity and gas markets in Australia. Here's a breakdown of what's happening, along with answers to some of your burning energy questions. How much bills will increase by depends on where you live and which energy provider you're with. This time, it will be at the start of July, based on a decision by key regulators. Energy costs are set to rise, once again. ![]()
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