Electricity prices fall to lowest level in years

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Electricity prices fall to lowest level in years
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Electricity prices fall to lowest level in years | CroweDM

But the consumer bills remain 32 per cent higher than they were in 2008 after years of cost pressures, pressure on coal and gas energy generators and political disputes over climate change policy.

Household electricity cost 27 cents per kilowatt-hour on average last year, compared to only 20 cents in 2008, the regulator said. “In 2019-20 environmental costs increased by $7 or 5 per cent more than the environmental component in 2018-19.“Similarly, in 2020-21 environmental costs increased by $6 or 4 per cent more than the environmental component in 2019-20.”

Some gains came from federal and state rules that required energy retailers to simplify their offerings to customers with a “default market offer” with a lower price, something former prime minister Malcolm Turnbull announced in August 2018, a few days before he was removed from the position. Prime Minister Scott Morrison continued the policy.“A number of factors likely contributed to the recent reductions.

Yet the ACCC said the bulk of the benefits for consumers have come from changes to supply in the wholesale market.

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