Have you ever wondered why your power bills keep increasing, even though wholesale electricity prices have reportedly fallen by 59 per cent in the past year? It's a puzzling contradiction that many households are facing.

The figures provided by the Australian Energy Market Operator (AEMO) shed some light on this issue. They revealed that wholesale electricity prices dropped significantly to $108 per megawatt hour in the June quarter, compared to $264 per megawatt hour the previous year.

So, you would assume the lower wholesale prices should have translated into lower bills for consumers.

However, the reality is different. Despite the decrease in wholesale prices, retail price rises were authorised to take effect from July 1, leading to customers in some states paying between 20 to 30 per cent more on their power bills. This is where the confusion lies for many Aussies.

Power bills for households increased by 20 to 30 per cent in some states on July 1. Credit: Shutterstock.

Energy Analyst Tony Wood from the Grattan Institute explained that the recent increase in household power bills is actually a delayed response to the wholesale price rises that occurred last year.

In other words, while wholesale prices have since gone down, the retail prices haven't immediately reflected that change. Instead, there was a lag in passing this on to consumers.

According to Mr Wood, 'This report is all about wholesale prices, and that's the people we buy the electricity from, the retailers, they buy their electricity from the generators through the market, and AEMO operates the market.'

Unfortunately, this means retailers have to manage the fluctuating wholesale costs, some of which led to a few retailers going out of business last year when prices skyrocketed, and they couldn't instantaneously adjust their prices.

So, this current hike in prices is essentially to recover costs that were incurred.

'So what happens is that as things settle down, we see all these costs were incurred,' Mr Wood went on to say.

According to Mr Westerman, the Chief Executive of AEMO, the decrease in wholesale electricity prices is due to three factors.

He explained, 'The first is that coal-fired power stations, which still supply about 60 per cent of Australia's energy, are down because coal prices are down. The second thing is that we've had more coal plant availability, so it's been there when we need it.'

'The third is that we've seen more and more renewables come into the system, and those renewables, as we know, really do push prices down.'

Despite experiencing a year-on-year decrease in the wholesale electricity price, there was an unexpected 31 per cent increase during the second quarter of this year. This surge amounted to a $25 per megawatt-hour increase, making it the second-highest wholesale price spike ever recorded for a June quarter.

The report highlights that the rise in prices was influenced by a higher occurrence of 'high-price events' compared to the first quarter. These events were primarily driven by colder weather conditions, lower wind levels, and transmission restrictions caused by outages.

​

But what does this mean for those facing these hiked power bills?

While annual wholesale electricity prices have indeed decreased, unfortunately, this drop is not expected to result in cost savings for individuals and families when receiving winter power bills in the upcoming months.

This is because the wholesale electricity market operates on a different timeline than the retail market. It operates a year in advance, meaning any changes in wholesale prices take time to be reflected in the bills consumers receive.

Therefore, the current decline in wholesale prices may be a delayed correction that won't immediately impact the costs paid by households in the short term.

As Mr Wood explained, 'It's just a horrible coincidence. What we should see this time next year is the implications of lower costs then being reflected in, hopefully, a reduction in wholesale prices.'

Mr Westerman stated that the lower wholesale prices would not affect retail bills in the next 12 months because the Australian Energy Regulator has locked in the default market offer for the present financial year.

He hinted at a more hopeful future for energy prices, stating, 'What we're focused on is the wholesale energy component and how we drive that down over time, and the answer to that is firmed renewable energy with transmission.'

Key Takeaways

• Wholesale power prices have dramatically fallen by 59 per cent in the past year in stark contrast to retail prices, which have increased by up to 30 per cent in eastern Australia.
• Despite a decrease in wholesale electricity prices, the spike in retail prices is seen as a delayed reaction to the wholesale price rises from last year.
• The wholesale electricity market operates a year in advance of the retail market, meaning any decrease in wholesale prices will not be reflected in retail bills immediately.
• Efforts are being made to shift towards renewable energy sources, which are expected to lead to less volatility in electricity prices and decouple the market from international commodity prices.

As the new financial year begins, many people are facing higher power bill costs due to a significant increase in electricity prices, with some states experiencing up to a 25 per cent rise. Recognising this issue, the federal government took action by introducing the Energy Bill Relief Fund.

To ensure that the assistance reaches those in need, states and territories engaged in negotiations with the federal government to determine how the rebates from the Energy Bill Relief Fund would be distributed among households and small businesses.

Apart from the Energy Bill Relief Fund, various states and territories also provide additional rebates and concessions to support individuals and businesses struggling to manage their power bills.

To find out if you are eligible for energy rebates in your state, simply click on the respective state below:

• Australian Capital Territory
• Queensland
• New South Wales
• Northern Territory
• South Australia
• Tasmania
• Western Australia
• Victoria

So, it appears that although we're seeing a decrease in wholesale energy prices now, we must wait for a while until we see the benefits trickle down to us. We anticipate that as Australia shifts towards renewable energy sources, electricity costs will likely be less volatile.

Once again, patience is the name of the game—particularly if we're to weather the storm of fluctuating energy prices! So, members, what are your opinions on this topic? How are you managing your energy bills lately? If you have any money-saving tips or advice to share, please feel free to leave a comment below!

 

[ToniaKisliakov]

Have you ever wondered why your power bills keep increasing, even though wholesale electricity prices have reportedly fallen by 59 per cent in the past year? It's a puzzling contradiction that many households are facing.

The figures provided by the Australian Energy Market Operator (AEMO) shed some light on this issue. They revealed that wholesale electricity prices dropped significantly to $108 per megawatt hour in the June quarter, compared to $264 per megawatt hour the previous year.

So, you would assume the lower wholesale prices should have translated into lower bills for consumers.

However, the reality is different. Despite the decrease in wholesale prices, retail price rises were authorised to take effect from July 1, leading to customers in some states paying between 20 to 30 per cent more on their power bills. This is where the confusion lies for many Aussies.

View attachment 26175

Power bills for households increased by 20 to 30 per cent in some states on July 1. Credit: Shutterstock.

Energy Analyst Tony Wood from the Grattan Institute explained that the recent increase in household power bills is actually a delayed response to the wholesale price rises that occurred last year.

In other words, while wholesale prices have since gone down, the retail prices haven't immediately reflected that change. Instead, there was a lag in passing this on to consumers.

According to Mr Wood, 'This report is all about wholesale prices, and that's the people we buy the electricity from, the retailers, they buy their electricity from the generators through the market, and AEMO operates the market.'

Unfortunately, this means retailers have to manage the fluctuating wholesale costs, some of which led to a few retailers going out of business last year when prices skyrocketed, and they couldn't instantaneously adjust their prices.

So, this current hike in prices is essentially to recover costs that were incurred.

'So what happens is that as things settle down, we see all these costs were incurred,' Mr Wood went on to say.

According to Mr Westerman, the Chief Executive of AEMO, the decrease in wholesale electricity prices is due to three factors.

He explained, 'The first is that coal-fired power stations, which still supply about 60 per cent of Australia's energy, are down because coal prices are down. The second thing is that we've had more coal plant availability, so it's been there when we need it.'

'The third is that we've seen more and more renewables come into the system, and those renewables, as we know, really do push prices down.'

Despite experiencing a year-on-year decrease in the wholesale electricity price, there was an unexpected 31 per cent increase during the second quarter of this year. This surge amounted to a $25 per megawatt-hour increase, making it the second-highest wholesale price spike ever recorded for a June quarter.

The report highlights that the rise in prices was influenced by a higher occurrence of 'high-price events' compared to the first quarter. These events were primarily driven by colder weather conditions, lower wind levels, and transmission restrictions caused by outages.

View attachment 26213​

But what does this mean for those facing these hiked power bills?

While annual wholesale electricity prices have indeed decreased, unfortunately, this drop is not expected to result in cost savings for individuals and families when receiving winter power bills in the upcoming months.

This is because the wholesale electricity market operates on a different timeline than the retail market. It operates a year in advance, meaning any changes in wholesale prices take time to be reflected in the bills consumers receive.

Therefore, the current decline in wholesale prices may be a delayed correction that won't immediately impact the costs paid by households in the short term.

As Mr Wood explained, 'It's just a horrible coincidence. What we should see this time next year is the implications of lower costs then being reflected in, hopefully, a reduction in wholesale prices.'

Mr Westerman stated that the lower wholesale prices would not affect retail bills in the next 12 months because the Australian Energy Regulator has locked in the default market offer for the present financial year.

He hinted at a more hopeful future for energy prices, stating, 'What we're focused on is the wholesale energy component and how we drive that down over time, and the answer to that is firmed renewable energy with transmission.'

Key Takeaways

• Wholesale power prices have dramatically fallen by 59 per cent in the past year in stark contrast to retail prices, which have increased by up to 30 per cent in eastern Australia.
• Despite a decrease in wholesale electricity prices, the spike in retail prices is seen as a delayed reaction to the wholesale price rises from last year.
• The wholesale electricity market operates a year in advance of the retail market, meaning any decrease in wholesale prices will not be reflected in retail bills immediately.
• Efforts are being made to shift towards renewable energy sources, which are expected to lead to less volatility in electricity prices and decouple the market from international commodity prices.

As the new financial year begins, many people are facing higher power bill costs due to a significant increase in electricity prices, with some states experiencing up to a 25 per cent rise. Recognising this issue, the federal government took action by introducing the Energy Bill Relief Fund.

To ensure that the assistance reaches those in need, states and territories engaged in negotiations with the federal government to determine how the rebates from the Energy Bill Relief Fund would be distributed among households and small businesses.

Apart from the Energy Bill Relief Fund, various states and territories also provide additional rebates and concessions to support individuals and businesses struggling to manage their power bills.

To find out if you are eligible for energy rebates in your state, simply click on the respective state below:

• Australian Capital Territory
• Queensland
• New South Wales
• Northern Territory
• South Australia
• Tasmania
• Western Australia
• Victoria

So, it appears that although we're seeing a decrease in wholesale energy prices now, we must wait for a while until we see the benefits trickle down to us. We anticipate that as Australia shifts towards renewable energy sources, electricity costs will likely be less volatile.

Once again, patience is the name of the game—particularly if we're to weather the storm of fluctuating energy prices! So, members, what are your opinions on this topic? How are you managing your energy bills lately? If you have any money-saving tips or advice to share, please feel free to leave a comment below!

 

[Cheezil]

What a joke! Of course there'll be another excuse down the track when the low wholesale prices are a year behind where we're at now & the decrease will NEVER in fact ever be passed on to consumers.... anyone a gambler & want to take bets?

 

[Baz1960]

Have you ever wondered why your power bills keep increasing, even though wholesale electricity prices have reportedly fallen by 59 per cent in the past year? It's a puzzling contradiction that many households are facing.

The figures provided by the Australian Energy Market Operator (AEMO) shed some light on this issue. They revealed that wholesale electricity prices dropped significantly to $108 per megawatt hour in the June quarter, compared to $264 per megawatt hour the previous year.

So, you would assume the lower wholesale prices should have translated into lower bills for consumers.

However, the reality is different. Despite the decrease in wholesale prices, retail price rises were authorised to take effect from July 1, leading to customers in some states paying between 20 to 30 per cent more on their power bills. This is where the confusion lies for many Aussies.

View attachment 26175

Power bills for households increased by 20 to 30 per cent in some states on July 1. Credit: Shutterstock.

Energy Analyst Tony Wood from the Grattan Institute explained that the recent increase in household power bills is actually a delayed response to the wholesale price rises that occurred last year.

In other words, while wholesale prices have since gone down, the retail prices haven't immediately reflected that change. Instead, there was a lag in passing this on to consumers.

According to Mr Wood, 'This report is all about wholesale prices, and that's the people we buy the electricity from, the retailers, they buy their electricity from the generators through the market, and AEMO operates the market.'

Unfortunately, this means retailers have to manage the fluctuating wholesale costs, some of which led to a few retailers going out of business last year when prices skyrocketed, and they couldn't instantaneously adjust their prices.

So, this current hike in prices is essentially to recover costs that were incurred.

'So what happens is that as things settle down, we see all these costs were incurred,' Mr Wood went on to say.

According to Mr Westerman, the Chief Executive of AEMO, the decrease in wholesale electricity prices is due to three factors.

He explained, 'The first is that coal-fired power stations, which still supply about 60 per cent of Australia's energy, are down because coal prices are down. The second thing is that we've had more coal plant availability, so it's been there when we need it.'

'The third is that we've seen more and more renewables come into the system, and those renewables, as we know, really do push prices down.'

Despite experiencing a year-on-year decrease in the wholesale electricity price, there was an unexpected 31 per cent increase during the second quarter of this year. This surge amounted to a $25 per megawatt-hour increase, making it the second-highest wholesale price spike ever recorded for a June quarter.

The report highlights that the rise in prices was influenced by a higher occurrence of 'high-price events' compared to the first quarter. These events were primarily driven by colder weather conditions, lower wind levels, and transmission restrictions caused by outages.

View attachment 26213​

But what does this mean for those facing these hiked power bills?

While annual wholesale electricity prices have indeed decreased, unfortunately, this drop is not expected to result in cost savings for individuals and families when receiving winter power bills in the upcoming months.

This is because the wholesale electricity market operates on a different timeline than the retail market. It operates a year in advance, meaning any changes in wholesale prices take time to be reflected in the bills consumers receive.

Therefore, the current decline in wholesale prices may be a delayed correction that won't immediately impact the costs paid by households in the short term.

As Mr Wood explained, 'It's just a horrible coincidence. What we should see this time next year is the implications of lower costs then being reflected in, hopefully, a reduction in wholesale prices.'

Mr Westerman stated that the lower wholesale prices would not affect retail bills in the next 12 months because the Australian Energy Regulator has locked in the default market offer for the present financial year.

He hinted at a more hopeful future for energy prices, stating, 'What we're focused on is the wholesale energy component and how we drive that down over time, and the answer to that is firmed renewable energy with transmission.'

Key Takeaways

• Wholesale power prices have dramatically fallen by 59 per cent in the past year in stark contrast to retail prices, which have increased by up to 30 per cent in eastern Australia.
• Despite a decrease in wholesale electricity prices, the spike in retail prices is seen as a delayed reaction to the wholesale price rises from last year.
• The wholesale electricity market operates a year in advance of the retail market, meaning any decrease in wholesale prices will not be reflected in retail bills immediately.
• Efforts are being made to shift towards renewable energy sources, which are expected to lead to less volatility in electricity prices and decouple the market from international commodity prices.

As the new financial year begins, many people are facing higher power bill costs due to a significant increase in electricity prices, with some states experiencing up to a 25 per cent rise. Recognising this issue, the federal government took action by introducing the Energy Bill Relief Fund.

To ensure that the assistance reaches those in need, states and territories engaged in negotiations with the federal government to determine how the rebates from the Energy Bill Relief Fund would be distributed among households and small businesses.

Apart from the Energy Bill Relief Fund, various states and territories also provide additional rebates and concessions to support individuals and businesses struggling to manage their power bills.

To find out if you are eligible for energy rebates in your state, simply click on the respective state below:

• Australian Capital Territory
• Queensland
• New South Wales
• Northern Territory
• South Australia
• Tasmania
• Western Australia
• Victoria

So, it appears that although we're seeing a decrease in wholesale energy prices now, we must wait for a while until we see the benefits trickle down to us. We anticipate that as Australia shifts towards renewable energy sources, electricity costs will likely be less volatile.

Once again, patience is the name of the game—particularly if we're to weather the storm of fluctuating energy prices! So, members, what are your opinions on this topic? How are you managing your energy bills lately? If you have any money-saving tips or advice to share, please feel free to leave a comment below!

Nearly every retailer is raising their prices without justification. One does it. The rest rest follow. ACCC and other "watchdog" bodies are toothless. General media won't help. As they recieve money for marketing. So consumers, if we want/need it we buy it. Big end of town keeps winning.

 

[Luckyus]

Have you ever wondered why your power bills keep increasing, even though wholesale electricity prices have reportedly fallen by 59 per cent in the past year? It's a puzzling contradiction that many households are facing.

The figures provided by the Australian Energy Market Operator (AEMO) shed some light on this issue. They revealed that wholesale electricity prices dropped significantly to $108 per megawatt hour in the June quarter, compared to $264 per megawatt hour the previous year.

So, you would assume the lower wholesale prices should have translated into lower bills for consumers.

However, the reality is different. Despite the decrease in wholesale prices, retail price rises were authorised to take effect from July 1, leading to customers in some states paying between 20 to 30 per cent more on their power bills. This is where the confusion lies for many Aussies.

View attachment 26175

Power bills for households increased by 20 to 30 per cent in some states on July 1. Credit: Shutterstock.

Energy Analyst Tony Wood from the Grattan Institute explained that the recent increase in household power bills is actually a delayed response to the wholesale price rises that occurred last year.

In other words, while wholesale prices have since gone down, the retail prices haven't immediately reflected that change. Instead, there was a lag in passing this on to consumers.

According to Mr Wood, 'This report is all about wholesale prices, and that's the people we buy the electricity from, the retailers, they buy their electricity from the generators through the market, and AEMO operates the market.'

Unfortunately, this means retailers have to manage the fluctuating wholesale costs, some of which led to a few retailers going out of business last year when prices skyrocketed, and they couldn't instantaneously adjust their prices.

So, this current hike in prices is essentially to recover costs that were incurred.

'So what happens is that as things settle down, we see all these costs were incurred,' Mr Wood went on to say.

According to Mr Westerman, the Chief Executive of AEMO, the decrease in wholesale electricity prices is due to three factors.

He explained, 'The first is that coal-fired power stations, which still supply about 60 per cent of Australia's energy, are down because coal prices are down. The second thing is that we've had more coal plant availability, so it's been there when we need it.'

'The third is that we've seen more and more renewables come into the system, and those renewables, as we know, really do push prices down.'

Despite experiencing a year-on-year decrease in the wholesale electricity price, there was an unexpected 31 per cent increase during the second quarter of this year. This surge amounted to a $25 per megawatt-hour increase, making it the second-highest wholesale price spike ever recorded for a June quarter.

The report highlights that the rise in prices was influenced by a higher occurrence of 'high-price events' compared to the first quarter. These events were primarily driven by colder weather conditions, lower wind levels, and transmission restrictions caused by outages.

View attachment 26213​

But what does this mean for those facing these hiked power bills?

While annual wholesale electricity prices have indeed decreased, unfortunately, this drop is not expected to result in cost savings for individuals and families when receiving winter power bills in the upcoming months.

This is because the wholesale electricity market operates on a different timeline than the retail market. It operates a year in advance, meaning any changes in wholesale prices take time to be reflected in the bills consumers receive.

Therefore, the current decline in wholesale prices may be a delayed correction that won't immediately impact the costs paid by households in the short term.

As Mr Wood explained, 'It's just a horrible coincidence. What we should see this time next year is the implications of lower costs then being reflected in, hopefully, a reduction in wholesale prices.'

Mr Westerman stated that the lower wholesale prices would not affect retail bills in the next 12 months because the Australian Energy Regulator has locked in the default market offer for the present financial year.

He hinted at a more hopeful future for energy prices, stating, 'What we're focused on is the wholesale energy component and how we drive that down over time, and the answer to that is firmed renewable energy with transmission.'

Key Takeaways

• Wholesale power prices have dramatically fallen by 59 per cent in the past year in stark contrast to retail prices, which have increased by up to 30 per cent in eastern Australia.
• Despite a decrease in wholesale electricity prices, the spike in retail prices is seen as a delayed reaction to the wholesale price rises from last year.
• The wholesale electricity market operates a year in advance of the retail market, meaning any decrease in wholesale prices will not be reflected in retail bills immediately.
• Efforts are being made to shift towards renewable energy sources, which are expected to lead to less volatility in electricity prices and decouple the market from international commodity prices.

As the new financial year begins, many people are facing higher power bill costs due to a significant increase in electricity prices, with some states experiencing up to a 25 per cent rise. Recognising this issue, the federal government took action by introducing the Energy Bill Relief Fund.

To ensure that the assistance reaches those in need, states and territories engaged in negotiations with the federal government to determine how the rebates from the Energy Bill Relief Fund would be distributed among households and small businesses.

Apart from the Energy Bill Relief Fund, various states and territories also provide additional rebates and concessions to support individuals and businesses struggling to manage their power bills.

To find out if you are eligible for energy rebates in your state, simply click on the respective state below:

• Australian Capital Territory
• Queensland
• New South Wales
• Northern Territory
• South Australia
• Tasmania
• Western Australia
• Victoria

So, it appears that although we're seeing a decrease in wholesale energy prices now, we must wait for a while until we see the benefits trickle down to us. We anticipate that as Australia shifts towards renewable energy sources, electricity costs will likely be less volatile.

Once again, patience is the name of the game—particularly if we're to weather the storm of fluctuating energy prices! So, members, what are your opinions on this topic? How are you managing your energy bills lately? If you have any money-saving tips or advice to share, please feel free to leave a comment below!

No point in fining the price gougeing arsehole basraeds, as we will only be paying it as consumers

 

[Monks]

what a joke and our federal government Mr Albanese ( excuse my spelling ) could not give a dam about helping us tells us we got to go all electric then approves a 25% price hick now they banning gas in new homes in 2024 then he says something about a election because he is not getting what he wants in backing for a houseing project but wait would we be destroying more of our mother nature or are we going up on top of things if he called an early election I think he could be introuble of getting back in banning gas but got no replacement for it, go all electric but he raises the price out of reach of most hell man grow something between your legs and make the right decissions TO MANY CHICKEN LITTLE'S IN THIS COUNTRY TODAY AND MOST OFF US OLDIES WILL REMEMBER THE FAIRTALE OF CHICKEN LITTLE AND THE SKY IS FALLING my 2cents worth go Pauline Hanson you got my vote look after us aussies and get ride of over seas investors

 

[Bob Kennedy]

Have you ever wondered why your power bills keep increasing, even though wholesale electricity prices have reportedly fallen by 59 per cent in the past year? It's a puzzling contradiction that many households are facing.

The figures provided by the Australian Energy Market Operator (AEMO) shed some light on this issue. They revealed that wholesale electricity prices dropped significantly to $108 per megawatt hour in the June quarter, compared to $264 per megawatt hour the previous year.

So, you would assume the lower wholesale prices should have translated into lower bills for consumers.

However, the reality is different. Despite the decrease in wholesale prices, retail price rises were authorised to take effect from July 1, leading to customers in some states paying between 20 to 30 per cent more on their power bills. This is where the confusion lies for many Aussies.

View attachment 26175

Power bills for households increased by 20 to 30 per cent in some states on July 1. Credit: Shutterstock.

Energy Analyst Tony Wood from the Grattan Institute explained that the recent increase in household power bills is actually a delayed response to the wholesale price rises that occurred last year.

In other words, while wholesale prices have since gone down, the retail prices haven't immediately reflected that change. Instead, there was a lag in passing this on to consumers.

According to Mr Wood, 'This report is all about wholesale prices, and that's the people we buy the electricity from, the retailers, they buy their electricity from the generators through the market, and AEMO operates the market.'

Unfortunately, this means retailers have to manage the fluctuating wholesale costs, some of which led to a few retailers going out of business last year when prices skyrocketed, and they couldn't instantaneously adjust their prices.

So, this current hike in prices is essentially to recover costs that were incurred.

'So what happens is that as things settle down, we see all these costs were incurred,' Mr Wood went on to say.

According to Mr Westerman, the Chief Executive of AEMO, the decrease in wholesale electricity prices is due to three factors.

He explained, 'The first is that coal-fired power stations, which still supply about 60 per cent of Australia's energy, are down because coal prices are down. The second thing is that we've had more coal plant availability, so it's been there when we need it.'

'The third is that we've seen more and more renewables come into the system, and those renewables, as we know, really do push prices down.'

Despite experiencing a year-on-year decrease in the wholesale electricity price, there was an unexpected 31 per cent increase during the second quarter of this year. This surge amounted to a $25 per megawatt-hour increase, making it the second-highest wholesale price spike ever recorded for a June quarter.

The report highlights that the rise in prices was influenced by a higher occurrence of 'high-price events' compared to the first quarter. These events were primarily driven by colder weather conditions, lower wind levels, and transmission restrictions caused by outages.

View attachment 26213​

But what does this mean for those facing these hiked power bills?

While annual wholesale electricity prices have indeed decreased, unfortunately, this drop is not expected to result in cost savings for individuals and families when receiving winter power bills in the upcoming months.

This is because the wholesale electricity market operates on a different timeline than the retail market. It operates a year in advance, meaning any changes in wholesale prices take time to be reflected in the bills consumers receive.

Therefore, the current decline in wholesale prices may be a delayed correction that won't immediately impact the costs paid by households in the short term.

As Mr Wood explained, 'It's just a horrible coincidence. What we should see this time next year is the implications of lower costs then being reflected in, hopefully, a reduction in wholesale prices.'

Mr Westerman stated that the lower wholesale prices would not affect retail bills in the next 12 months because the Australian Energy Regulator has locked in the default market offer for the present financial year.

He hinted at a more hopeful future for energy prices, stating, 'What we're focused on is the wholesale energy component and how we drive that down over time, and the answer to that is firmed renewable energy with transmission.'

Key Takeaways

• Wholesale power prices have dramatically fallen by 59 per cent in the past year in stark contrast to retail prices, which have increased by up to 30 per cent in eastern Australia.
• Despite a decrease in wholesale electricity prices, the spike in retail prices is seen as a delayed reaction to the wholesale price rises from last year.
• The wholesale electricity market operates a year in advance of the retail market, meaning any decrease in wholesale prices will not be reflected in retail bills immediately.
• Efforts are being made to shift towards renewable energy sources, which are expected to lead to less volatility in electricity prices and decouple the market from international commodity prices.

As the new financial year begins, many people are facing higher power bill costs due to a significant increase in electricity prices, with some states experiencing up to a 25 per cent rise. Recognising this issue, the federal government took action by introducing the Energy Bill Relief Fund.

To ensure that the assistance reaches those in need, states and territories engaged in negotiations with the federal government to determine how the rebates from the Energy Bill Relief Fund would be distributed among households and small businesses.

Apart from the Energy Bill Relief Fund, various states and territories also provide additional rebates and concessions to support individuals and businesses struggling to manage their power bills.

To find out if you are eligible for energy rebates in your state, simply click on the respective state below:

• Australian Capital Territory
• Queensland
• New South Wales
• Northern Territory
• South Australia
• Tasmania
• Western Australia
• Victoria

So, it appears that although we're seeing a decrease in wholesale energy prices now, we must wait for a while until we see the benefits trickle down to us. We anticipate that as Australia shifts towards renewable energy sources, electricity costs will likely be less volatile.

Once again, patience is the name of the game—particularly if we're to weather the storm of fluctuating energy prices! So, members, what are your opinions on this topic? How are you managing your energy bills lately? If you have any money-saving tips or advice to share, please feel free to leave a comment below!

 

[Bob Kennedy]

Renewables may appear to be cheaper, but if the corrupt government removes the huge subsidies it pays the overseas owners of the wind and solar farms, we would be paying a lot more, making it very expensive indeed.
No-one has yet been able to prove that CO2 is a pollutant, in fact nothing on earth can survive without it. All of the doom merchants predictions about the danger of "climate change" is all rubbish. They have been making all sorts of noise about the end of the world etc. etc. for years; but guess what? None of them have happened... Remember the Y2K bug at the beginning of this century, planes were going to fall out of the sky because computers would fail etc. etc. all bullshit!!! Just like renewaable energy to save the planet.
The other points everyone forgets is disposing of all of these wind turbines and solar panels when they are buggered... and the amount of metal and other minerals needed to build these eye sores.

 

[Colette 3799]

What a joke! Of course there'll be another excuse down the track when the low wholesale prices are a year behind where we're at now & the decrease will NEVER in fact ever be passed on to consumers.... anyone a gambler & want to take bets?

So we have to wait a year by which time they will hope we’ve all forgotten about it. They always wriggle out of it with their excuses

 

[Mr Chips]

Well if we have to be patient so be it but, I trust that my energy provider is patient in waiting for payment of my ridiculous energy bill which I simply cannot afford.

 

[Tygie]

Have you ever wondered why your power bills keep increasing, even though wholesale electricity prices have reportedly fallen by 59 per cent in the past year? It's a puzzling contradiction that many households are facing.

The figures provided by the Australian Energy Market Operator (AEMO) shed some light on this issue. They revealed that wholesale electricity prices dropped significantly to $108 per megawatt hour in the June quarter, compared to $264 per megawatt hour the previous year.

So, you would assume the lower wholesale prices should have translated into lower bills for consumers.

However, the reality is different. Despite the decrease in wholesale prices, retail price rises were authorised to take effect from July 1, leading to customers in some states paying between 20 to 30 per cent more on their power bills. This is where the confusion lies for many Aussies.

View attachment 26175

Power bills for households increased by 20 to 30 per cent in some states on July 1. Credit: Shutterstock.

Energy Analyst Tony Wood from the Grattan Institute explained that the recent increase in household power bills is actually a delayed response to the wholesale price rises that occurred last year.

In other words, while wholesale prices have since gone down, the retail prices haven't immediately reflected that change. Instead, there was a lag in passing this on to consumers.

According to Mr Wood, 'This report is all about wholesale prices, and that's the people we buy the electricity from, the retailers, they buy their electricity from the generators through the market, and AEMO operates the market.'

Unfortunately, this means retailers have to manage the fluctuating wholesale costs, some of which led to a few retailers going out of business last year when prices skyrocketed, and they couldn't instantaneously adjust their prices.

So, this current hike in prices is essentially to recover costs that were incurred.

'So what happens is that as things settle down, we see all these costs were incurred,' Mr Wood went on to say.

According to Mr Westerman, the Chief Executive of AEMO, the decrease in wholesale electricity prices is due to three factors.

He explained, 'The first is that coal-fired power stations, which still supply about 60 per cent of Australia's energy, are down because coal prices are down. The second thing is that we've had more coal plant availability, so it's been there when we need it.'

'The third is that we've seen more and more renewables come into the system, and those renewables, as we know, really do push prices down.'

Despite experiencing a year-on-year decrease in the wholesale electricity price, there was an unexpected 31 per cent increase during the second quarter of this year. This surge amounted to a $25 per megawatt-hour increase, making it the second-highest wholesale price spike ever recorded for a June quarter.

The report highlights that the rise in prices was influenced by a higher occurrence of 'high-price events' compared to the first quarter. These events were primarily driven by colder weather conditions, lower wind levels, and transmission restrictions caused by outages.

View attachment 26213​

But what does this mean for those facing these hiked power bills?

While annual wholesale electricity prices have indeed decreased, unfortunately, this drop is not expected to result in cost savings for individuals and families when receiving winter power bills in the upcoming months.

This is because the wholesale electricity market operates on a different timeline than the retail market. It operates a year in advance, meaning any changes in wholesale prices take time to be reflected in the bills consumers receive.

Therefore, the current decline in wholesale prices may be a delayed correction that won't immediately impact the costs paid by households in the short term.

As Mr Wood explained, 'It's just a horrible coincidence. What we should see this time next year is the implications of lower costs then being reflected in, hopefully, a reduction in wholesale prices.'

Mr Westerman stated that the lower wholesale prices would not affect retail bills in the next 12 months because the Australian Energy Regulator has locked in the default market offer for the present financial year.

He hinted at a more hopeful future for energy prices, stating, 'What we're focused on is the wholesale energy component and how we drive that down over time, and the answer to that is firmed renewable energy with transmission.'

Key Takeaways

• Wholesale power prices have dramatically fallen by 59 per cent in the past year in stark contrast to retail prices, which have increased by up to 30 per cent in eastern Australia.
• Despite a decrease in wholesale electricity prices, the spike in retail prices is seen as a delayed reaction to the wholesale price rises from last year.
• The wholesale electricity market operates a year in advance of the retail market, meaning any decrease in wholesale prices will not be reflected in retail bills immediately.
• Efforts are being made to shift towards renewable energy sources, which are expected to lead to less volatility in electricity prices and decouple the market from international commodity prices.

As the new financial year begins, many people are facing higher power bill costs due to a significant increase in electricity prices, with some states experiencing up to a 25 per cent rise. Recognising this issue, the federal government took action by introducing the Energy Bill Relief Fund.

To ensure that the assistance reaches those in need, states and territories engaged in negotiations with the federal government to determine how the rebates from the Energy Bill Relief Fund would be distributed among households and small businesses.

Apart from the Energy Bill Relief Fund, various states and territories also provide additional rebates and concessions to support individuals and businesses struggling to manage their power bills.

To find out if you are eligible for energy rebates in your state, simply click on the respective state below:

• Australian Capital Territory
• Queensland
• New South Wales
• Northern Territory
• South Australia
• Tasmania
• Western Australia
• Victoria

So, it appears that although we're seeing a decrease in wholesale energy prices now, we must wait for a while until we see the benefits trickle down to us. We anticipate that as Australia shifts towards renewable energy sources, electricity costs will likely be less volatile.

Once again, patience is the name of the game—particularly if we're to weather the storm of fluctuating energy prices! So, members, what are your opinions on this topic? How are you managing your energy bills lately? If you have any money-saving tips or advice to share, please feel free to leave a comment below!

1. The power companies are RIPPING everyone off!
2. power company greed
3. See the above 2 options

 

[Monks]

Guy's our governments sold us out to over sea's corporations and then wasted the money we now pay to drive on roads that they built now controlled by over sea's corporations again we pay through the noise just like our power and gas but now we going to loose our gas and we got no say in it and our governements are letting it happen by over sea's corporations they stuffed up not us but we got to pay for there stuff up we need a class action against them but wait the money for winning guess who would be paying so we loose no matter what and they just get to well payed for it

 

[Staffordshire Whippet]

Horsepoop.
Electricity retailers blame "inflation" for price increases, when it's their price increases that fuel inflation!
Why do we need "Retailers" anyway? Whose genius idea was it to flog off electricity (which was a public utility) to their mates in the private sector? I, at least, am lucky to live in Queensland, outside the Southeast (where electricity was privatised) way up in the far North (where it wasn't, so we still have public ownership) and consequently we haven't been screwed anything like as hard as everybody else.

 

[IAN3005]

Have you ever wondered why your power bills keep increasing, even though wholesale electricity prices have reportedly fallen by 59 per cent in the past year? It's a puzzling contradiction that many households are facing.

The figures provided by the Australian Energy Market Operator (AEMO) shed some light on this issue. They revealed that wholesale electricity prices dropped significantly to $108 per megawatt hour in the June quarter, compared to $264 per megawatt hour the previous year.

So, you would assume the lower wholesale prices should have translated into lower bills for consumers.

However, the reality is different. Despite the decrease in wholesale prices, retail price rises were authorised to take effect from July 1, leading to customers in some states paying between 20 to 30 per cent more on their power bills. This is where the confusion lies for many Aussies.

View attachment 26175

Power bills for households increased by 20 to 30 per cent in some states on July 1. Credit: Shutterstock.

Energy Analyst Tony Wood from the Grattan Institute explained that the recent increase in household power bills is actually a delayed response to the wholesale price rises that occurred last year.

In other words, while wholesale prices have since gone down, the retail prices haven't immediately reflected that change. Instead, there was a lag in passing this on to consumers.

According to Mr Wood, 'This report is all about wholesale prices, and that's the people we buy the electricity from, the retailers, they buy their electricity from the generators through the market, and AEMO operates the market.'

Unfortunately, this means retailers have to manage the fluctuating wholesale costs, some of which led to a few retailers going out of business last year when prices skyrocketed, and they couldn't instantaneously adjust their prices.

So, this current hike in prices is essentially to recover costs that were incurred.

'So what happens is that as things settle down, we see all these costs were incurred,' Mr Wood went on to say.

According to Mr Westerman, the Chief Executive of AEMO, the decrease in wholesale electricity prices is due to three factors.

He explained, 'The first is that coal-fired power stations, which still supply about 60 per cent of Australia's energy, are down because coal prices are down. The second thing is that we've had more coal plant availability, so it's been there when we need it.'

'The third is that we've seen more and more renewables come into the system, and those renewables, as we know, really do push prices down.'

Despite experiencing a year-on-year decrease in the wholesale electricity price, there was an unexpected 31 per cent increase during the second quarter of this year. This surge amounted to a $25 per megawatt-hour increase, making it the second-highest wholesale price spike ever recorded for a June quarter.

The report highlights that the rise in prices was influenced by a higher occurrence of 'high-price events' compared to the first quarter. These events were primarily driven by colder weather conditions, lower wind levels, and transmission restrictions caused by outages.

View attachment 26213​

But what does this mean for those facing these hiked power bills?

While annual wholesale electricity prices have indeed decreased, unfortunately, this drop is not expected to result in cost savings for individuals and families when receiving winter power bills in the upcoming months.

This is because the wholesale electricity market operates on a different timeline than the retail market. It operates a year in advance, meaning any changes in wholesale prices take time to be reflected in the bills consumers receive.

Therefore, the current decline in wholesale prices may be a delayed correction that won't immediately impact the costs paid by households in the short term.

As Mr Wood explained, 'It's just a horrible coincidence. What we should see this time next year is the implications of lower costs then being reflected in, hopefully, a reduction in wholesale prices.'

Mr Westerman stated that the lower wholesale prices would not affect retail bills in the next 12 months because the Australian Energy Regulator has locked in the default market offer for the present financial year.

He hinted at a more hopeful future for energy prices, stating, 'What we're focused on is the wholesale energy component and how we drive that down over time, and the answer to that is firmed renewable energy with transmission.'

Key Takeaways

• Wholesale power prices have dramatically fallen by 59 per cent in the past year in stark contrast to retail prices, which have increased by up to 30 per cent in eastern Australia.
• Despite a decrease in wholesale electricity prices, the spike in retail prices is seen as a delayed reaction to the wholesale price rises from last year.
• The wholesale electricity market operates a year in advance of the retail market, meaning any decrease in wholesale prices will not be reflected in retail bills immediately.
• Efforts are being made to shift towards renewable energy sources, which are expected to lead to less volatility in electricity prices and decouple the market from international commodity prices.

As the new financial year begins, many people are facing higher power bill costs due to a significant increase in electricity prices, with some states experiencing up to a 25 per cent rise. Recognising this issue, the federal government took action by introducing the Energy Bill Relief Fund.

To ensure that the assistance reaches those in need, states and territories engaged in negotiations with the federal government to determine how the rebates from the Energy Bill Relief Fund would be distributed among households and small businesses.

Apart from the Energy Bill Relief Fund, various states and territories also provide additional rebates and concessions to support individuals and businesses struggling to manage their power bills.

To find out if you are eligible for energy rebates in your state, simply click on the respective state below:

• Australian Capital Territory
• Queensland
• New South Wales
• Northern Territory
• South Australia
• Tasmania
• Western Australia
• Victoria

So, it appears that although we're seeing a decrease in wholesale energy prices now, we must wait for a while until we see the benefits trickle down to us. We anticipate that as Australia shifts towards renewable energy sources, electricity costs will likely be less volatile.

Once again, patience is the name of the game—particularly if we're to weather the storm of fluctuating energy prices! So, members, what are your opinions on this topic? How are you managing your energy bills lately? If you have any money-saving tips or advice to share, please feel free to leave a comment below!

In this day and age of technology, they should be able to switch at the drop of a hat. The prices go up in an instant and down slowly,oh so slowly. Perhaps it's because the suppliers have to purchase quarterly in advance.