Wholesale price of electricity for 2023 has fallen by 38 per cent since December

Households can expect relief from soaring power bills this year, with new figures showing the wholesale price of electricity for 2023 has fallen by 38 per cent in NSW since December.

Households can expect relief from soaring power bills this year, with new figures showing the wholesale price of electricity for 2023 has fallen by 38 per cent in NSW since the Albanese government’s December intervention into the gas market.

Federal Treasury officials compile monthly tables of the prices energy retailers are expected to pay for the electricity they sell on to households.

Last year those prices rose steeply on the back of surging international gas prices in the wake of Russia’s invasion of Ukraine.

But the prices the market was forecasting for wholesale electricity in December, after the government’s intervention, were 30-40 per cent down nationally on forecasts in November, before the government intervened.

The biggest drop was in Queensland, where the price dropped by 44 per cent, followed by NSW with a drop of 38 per cent.

Treasurer Jim Chalmers said the government had shielded families from the worst of power bill rises. Picture: Liam Kidston

The future wholesale price of electricity for 2023 in NSW fell from $213 per megawatt hour in November to $132 per megawatt hour, according to the Treasury analysis.

Wholesale prices in SA fell by 32 per cent in South Australia and 29 per cent in Victoria.

The change in wholesale prices are not expected to flow through to consumers for some time because today’s retail prices reflect contracts retailers signed before the market intervention.

But Treasurer Jim Chalmers said the government’s intervention would help shelter consumers from the worst of the forecast price increases.

“Our intervention will help take some of the sting out of power prices for families and businesses,” he said.

He said the government’s decision to cap wholesale gas prices had been shown to be responsible, reasonable, timely and targeted.

“This isn’t an overnight fix, it’s going to take some time, but it’s heartening to see the plan is already starting to work,” he said.

Mr Chalmers said the ACCC, which polices the competition policy, had been tasked with making sure the wholesale price drops are passed onto consumers.

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