Why it’s important: Soaring retail tariffs have burnt households and boosted inflation over the past two years
Context: The Albanese government promised households $275 lower power bills before the 2022 election
What’s next: A plunge in wholesale power prices should offer households and inflation relief this year
Wholesale electricity prices have plunged since their peaks in mid-2022, offering hard-pressed households and small businesses the prospect of relief from two years of surging prices when retail tariffs are reset in the middle of this year.
Wholesale prices have fallen more than two-thirds from their peaks during the National Electricity Market turmoil of mid-2022 to the December 2023 quarter, and about 40 per cent from a year ago to average just under $60 per megawatt hour.
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Ben Potter was a senior writer at The Australian Financial Review.
