Australian Energy Market Commission forecasts electricity prices rises for Victorians in 2018

ELECTRICITY bills for Victorian families and businesses are expected to soar 16 per cent next year, with the closure of Hazelwood blamed for driving up costs.

The federal government is bolstering online price comparison tool Energy Made Easy, which allows consumers to upload power bills to find better deals. Picture: Steve Tanner

THE shutdown of Hazelwood power station is being blamed as electricity bills in Victoria are expected to soar 16 per cent next year.

The closure of coal-fired power stations has led to a ­predicted 48 per cent increase in wholesale power costs.

But a report from the ­Australian Energy Market Commission, to be released today, suggests next year’s price hikes will be wiped out in 2019 and 2020.

CALL FOR STATE TO PURCHASE HAZELWOOD

POWER STATION’S PARTS GO ON SALE

The AEMC report said wholesale costs, which make up about a third of the average bill, would soar 48 per cent next year, then fall 18 per cent in 2019 and almost 30 per cent in 2020 as new wind and solar generation eased pressure.

Prices for Victorians are ­expected to fall 6.6 per cent in 2019 and 9.7 per cent in 2020.

Environmental policy costs, including those of several state energy schemes, which make up about 6 per cent of the average bill, are expected to jump by 10 per cent next year.

The AEMC report said wholesale costs would soar 48 per cent next year, then fall 18 per cent in 2019 and almost 30 per cent in 2020.

Big providers Origin, Energy Australia and AGL have said they would raise prices by 10 to 15 per cent next year.

AEMC chairman John Pierce said investment in new energy generation was needed to stop the volatile price “rollercoaster”.

He urged the states to work together on the federal government’s national energy guarantee, which he said “can work in the long-term interests of consumers and keep the lights on as the energy sector continues to restructure”.

The federal government is bolstering its online price comparison tool “Energy Made Easy”, which allows consumers to upload their power bills to try to find better deals.

END OF ERA AS HAZELWOOD LIGHTS TURN OFF

Energy Minister Josh Frydenberg said new rules would stop retailers promoting “ discounted” offers that were more expensive than standard rates.

“(It) will provide consumers with the confidence that a discount is exactly that — a discount,” he said.

The AEMC report found 90 per cent of Victorian homes, on market offers, paid an average of $1105 this year. The rest, on standing offers, paid $1345 without GST, and could have saved up to 23 per cent with a market deal.

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