Wholesale energy prices fall 46 per cent in the year to September

Almost a year since the Federal Government’s “big stick’” legislation was introduced, wholesale electricity prices have continued to fall.

Wholesale electricity prices have fallen by nearly 50 per cent during the 12 months since the Federal Government’s “big stick” legislation was introduced.

The cost of wholesale electricity for retailers makes up around a third of household power bills and even more for industry.

Energy Minister Angus Taylor said wholesale prices in the national electricity market had reduced by up to 46 per cent in the year to September.

“While it is good to see reductions starting to flow through to customers, we are going to keep the pressure on the energy companies to make sure they keep coming down,” Mr Taylor said.

“We are committed to delivering affordable, reliable energy that will create jobs and support Australia’s economic recovery.”

Energy Minister Angus Taylor says the big stick legislation introduced in September 2019 ensures energy companies can be held to account. Picture: AAP Image/Mick Tsikas

South Australia and Tasmania had the biggest savings with the wholesale price almost $50 less than the previous year.

The 46 per cent difference in wholesale price slashed SA’s price in the previous 12 months from $107.53 MWh to $57.92, while Tasmania had a reduction from $96.58 to $ 52.20.

An Energy Department analysis of Australian Energy Market Operator data also shows Victoria had a 40 per cent price drop to $67.37 in the past 12 months.

This was followed by a 38 per cent fall in Queensland and a 23 per cent drop in NSW.

The Government’s big stick legislation ensures reductions in wholesale costs are passed on to customers.

Penalties will also apply for anti-competitive behaviour or moves to manipulate electricity prices.

Families and businesses can expect prices to continue to fall with key overseas indicators forecasting wholesale prices to remain low over the medium term.

Mr Taylor said the Government had met its $70 MWh price target more than a year ahead of schedule.