The Australian Energy Market Commission (AEMC)’s Residential Price Trends Report shows Australian households could significantly reduce their electricity bills through a well-managed transition to electrification.
The comprehensive analysis was extended from a three-year to a 10-year outlook to better capture long-term trends and provide deeper insights into what drives costs as Australia’s energy system transforms.
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AEMC chair Anna Collyer says, “Our modelling shows that with effective planning and investment, Australian households could see their total energy spending fall substantially over the next decade through electrification.
“However, we need to ensure this transition is well-managed and equitable, so that the benefits are accessible to all households, not just those who can access new technology immediately.
“This 10-year outlook provides new insight into how household energy costs could evolve as Australia’s energy system transforms. While the overall trend is encouraging, achieving these benefits requires coordinated action across the sector,’’ Collyer says.
The Clean Energy Council welcomed the findings of the Australian Energy Market Commission (AEMC)’s analysis.
“This review has found that household electricity bills could be 13% lower over the next decade to 2034, driven by continued investment in the rollout of large-scale renewables and storage,” Clean Energy Council CEO Kane Thornton says.
“The AEMC’s analysis also found that households investing in rooftop solar, home batteries electric vehicles and electrification look set to save 70% off the cost of their energy bills, or $1,000 per annum over the same period.”
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The AEMC’s analysis also said maintaining the pace of transmission investment was core to keeping prices as low as possible.
“The bottom line of the AEMC’s review is that renewables firmed by storage and transmission, coupled with continued consumer led investment in rooftop PV and batteries, place Australia firmly in the driver’s seat to deliver tangible cost of living relief and achieve our climate and emissions reduction commitments at the lowest possible cost to consumers and taxpayers,” Thornton says.
