Australian Household Energy Prices Expected To DROP In 2018
Throughout 2017, the Australian Energy Market Commission has shown that power prices throughout Australia have risen by 11%, with households nationwide feeling the pain of large power bills; especially during the recent heatwaves.
However, homes around the country have been delivered some good news today with the Australian Energy Market Commission's annual report revealing that energy prices expected the start falling in 2018.
The drop is expected to occur in mid-2018 with a 12% decrease in price forecast over a two year period, until mid-2020.
The commission expects the cost of household energy bills to drop by around $200 within this time.
This fall in power prices is due to the introduction of more wind and solar power into the energy system.
Energy prices are predicted to fall back into line with where they were sitting in 2016.
However, the commission has also warned that the lower prices could lead to the premature closing of more coal-fired power plants as they would no longer be commercially feasible.
"Without investment in replacement dispatchable capacity, wholesale prices will go up again and remain volatile and the rollercoaster will be repeated," said the commission's Chairman John Pierce.
Mr Pierce believes that there is a small window of opportunity at this time to develop a plan that would assist the long-term interests of consumers, while also keeping the lights on as the energy sector restructures.