Market Review: Completed
This report was submitted to the MCE on 30 November 2010. Since then a number of price determinations and policy announcements have occurred and, as a result, some of the data in the report is now outdated.
The Ministerial Council on Energy (MCE) has asked the AEMC to report on trends in residential electricity price movements over the next three years, following a request for this report from the Council of Australian Governments. On 10 June 2011, the AEMC published its ‘Future Possible Retail Electricity Price Movements: 1 July 2010 to 30 June 2013' report. This report sets out future possible retail electricity prices and the drivers of these prices at a national level and in each state and territory in Australia from 2010-2011 to 2012-2013. Actual electricity prices and cost components in 2009-2010 have been used as a base year for comparison.
Nationally, residential electricity prices are forecast to increase by 30% in nominal terms (or 5.84 c/kWh) over 2009-2010 to 2012-2013. In real terms this is an increase of 19%. In all jurisdictions, except for Victoria, the price of standing offer electricity contracts is regulated by state and territory jurisdictional regulators or governments.
Where possible, data in the report has been based on publicly available information. In Western Australia and the Northern Territory as retail electricity prices are subsidised by the respective jurisdictional governments, the report reflects the costs of supply for residential electricity customers and the drivers in these costs.
This report was submitted to the MCE on 30 November 2010. Since then a number of price determinations and policy announcements have occurred and, as a result, some of the data in the report is now outdated.View less