Interesting analysis of energy pricing and affordability
The Australian Energy Council has published an interesting article comparing data on energy pricing and affordability published by the Australian Bureau of Statistics (ABS) and the Australian Energy Regulator (AER).
According to the ABS, in the 12 months to December 2015 on average electricity prices across Australia remained flat (decreased by 0.1%) – although as this graph shows, pricing changes varied by state with Adelaide falling by 8.1% and Perth rising by 6.1%. Price reductions across most states in the NEM were a result of changes to network pricing.
However electricity bills depend on more than just standard energy pricing – different offers and discounts available in the market, and different levels of consumption will also have an impact. The chart below shows that when these factors are included in analysis, electricity bills across all regions of the NEM have fallen in the year to June 2015, except in QLD. These findings are consistent with research published by AGL economists which found that between 2015 and 2020 average residential electricity bills in the NEM could decrease by 11% to 15% (in real terms), or up to 23% if the trend towards energy efficiency and distributed generation continues.
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