Why your electricity bill is about to tumble
QUEENSLAND power bills are set for the biggest falls in the nation over the next three years as increased renewable generation and lower environmental costs drive prices down, according to a new report.
The Australian Energy Market Commission's annual report on electricity price trends found costs were falling across three key drivers of consumer bills: wholesale, environmental and network costs.
Average southeast Queensland household power bills were predicted to drop from $1425 in 2018-19 to $1147 in 2021-22, a fall of about 20 per cent, nearly triple the national average.
The annual saving of $278 in southeast Queensland was $181 more than the predicted national saving, according to the report.
AEMC chairman John Pierce said the national market would benefit from the "significant injection" of about 5,000 MW of new supply, mainly from renewables, in the coming years.
"More supply puts downward pressure on prices," he said.
"But it's important to note that over a decade of analysis we have seen trends change sharply in response to unanticipated factors such as sudden generator closures and implementation of new policies."
Wholesale costs, which make up about a third of each bill, were set to drop by 12.4 per cent or $64 in Queensland from 2018-19 to 2021-22 as more wind and solar farms come online.
"New renewable generation means that prices of electricity are lower during peak renewable production periods, which may lead to lower wholesale electricity purchase costs depending on the hedging profiles of retailers," the report says.
Network costs are set to tumble about $95 (14.7 per cent) largely from declines in Energex's charges for poles and wires and metering.
Environmental scheme costs are set to fall by $24 while other fees including retail margins are set to cost $94 less.
Energy Minister Angus Taylor said a string of recent energy reports had shown prices were starting to "turn the corner".
"The Liberal National Government is committed to getting prices down and maintaining the reliability of our electricity," he said.
"While we welcome the AEMC predictions, there is more to be done."