Victoria’s electricity prices rise 114 per cent year-on-year, Australian Energy Regulator data reveals

Victoria’s wholesale electricity prices have risen by 114 per cent in the past year, dampening the prospects of relief for power bill pain in 2025.

Victoria’s wholesale electricity prices rose by more than all mainland states over the past year, dampening prospects of bill relief in 2025.

The price increases were due to a combination of factors at different times of the year, including variability in wind generation, colder winter weather and extra demand, and wild market fluctuations.

Data set to be released by the Australian Energy Regulator shows that in the past three months wholesale prices fell by nine per cent in Victoria, but that year on year they had risen by 114 per cent.

Wholesale prices can account for about a third of costs on a household bill.

The wholesale prices will influence how regulators can adjust ‘default’ offers that are set in March.

While higher historic prices do not automatically cause future bill hikes, they will influence how regulators can adjust basic or “default” offers that are set in March — two months before a federal election is due.

Labor is desperately hoping for ongoing bill relief after massive hikes took place in 2022 when it took office, due to a global energy crunch.

When it was in opposition, the ALP said it would drive down bills by $275.

There were huge swings in the output of wind energy this year, including some months that were dubbed a “wind drought” that forced the use of more expensive firming resources such as batteries, hydro and gas.

Wind later picked up, leading to a rise in the number of days when prices dipped below $0 – meaning energy generated more than meets demand.

Labor has a target of having renewable energy generate 82 per cent of Australia’s electricity by 2030, and federal Energy Minister Chris Bowen said more frequent negative prices illustrated the plan was working.

The Coalition is likely to seize on the year-on-year increase as evidence of the pitfalls of variable energy sources dominating the grid, which was traditionally underpinned by coal-fired power stations.

The Coalition has proposed seven nuclear power stations to effectively replace coal-fired options, but has yet to release the cost of its plan.

In Victoria, the Allan government has a renewables target of 95 per cent by 2035.

At the last election it pledged to “bring back” the State Electricity Commission to accelerate the transition, but a report tabled in parliament on Thursday showed only one project had been established to June 30 this year.

The SEC was also embarrassed by revelations it plastered pictures of a Spanish wind farm on its glossy annual report cover, and the fact there was just one person employed in the company’s Morwell office as at the end of June – compared to 44 in the Melbourne office.