NEM Wholesale Electricity Prices Tumble, But Bill Relief remains Uncertain
Sydney, Australia – Wholesale electricity prices across Australia’s National electricity Market (NEM) have fallen by 27% recently, offering a potential reprieve for households battling rising energy costs. Though, the extent to which consumers will benefit remains unclear, as wholesale costs represent only around 35% of a typical electricity bill.
A $500 quarterly bill sees approximately $175 attributed to wholesale costs. The 27% drop translates to a $47 reduction - less than 10% of the total bill – if retailers pass on the savings.Bills are currently comprised of network costs (~39%), environmental costs (~7%), retail/other costs (~10%), and a retailer margin (~6%).
Federal energy bill rebates, which have provided some financial relief, are set to expire at the end of the year with no current indication of extension. Experts recommend consumers actively compare electricity plans to avoid overpaying.
For households with suitable rooftops, installing solar panels is a viable option. The federal government’s Cheaper Home Batteries program is also gaining traction, with approximately 108,000 batteries installed since its launch in July, aiming to reduce reliance on the mains grid and potentially further lower peak electricity prices. The program makes residential energy storage more accessible, shortening payback times for homeowners.
