Australians may pay lower power bills in 2021, but that’s only if the Australian Energy Market Commission (AEMC) can implement new electricity trading interval rules successfully.
The AEMC said that it seeks to impose a five-minute interval system for the process of selling wholesale electricity, which will stimulate competition leading to more affordable prices. The proposed change will also benefit renewable energy generators, including those powered by batteries.
AEMC Chairman John Pierce said that more transparent price signals will result in more competitive bidding. If average wholesale prices drop as much as 50 cents per megawatt hour, consumers would benefit since energy companies will save almost $100 million in energy costs per year.
Power generators in the country sell electricity under the ’30-minute interval’ system. Pierce believes that by shortening the interval system, it would lead to lead wholesale prices that account for at least one-third of a usual power bill. Australians should prepare for soaring energy prices, which already occurs in New South Wales and Victoria.
According to the 2017 September Quarter Consumer Price Index, electricity prices rose more than double in New South Wales and Victoria between 2008 and 2016. As a result, many Australians have turned to alternative sources of energy, including solar panels and batteries, to lower their electricity bills.
Households should also check their appliances for any defects or necessary repairs. If you live in New South Wales, you should consult professional air conditioning contractors in Sydney for any problem with your HVAC system. Part of lowering your power bill includes making sure that your home appliances are in good condition.
Higher electricity rates mean that power will account for a larger share of household expenses. While the government works to offer cheaper costs for consumers, you should also do your part in saving energy.