Electricity prices are forecast to fall over the next three years as lower costs of gas and renewable energy drive a $150 drop in energy bills for a typical Victorian household and a reduction of $30 in NSW.
Australian Energy Market Commissions chief executive Benn Barr said Victoria had the lowest power prices in the nation and 95 per cent of consumers had opted for cheaper retail energy deals than the default market offers. The forecast $150 saving for Victorian households over the next three years represents a 15 per cent bill decrease.
“The five per cent of Victorians still on the Victorian default offer could save up to $137 off their energy bill every year if they shopped around,” Mr Barr said.
However, the situation in NSW is more complicated. Prices are forecast to fall overall in the next three years. Next year a 5.4 per cent drop is forecast, the following year 4.1 per cent reduction and then a rise of 7.8 per cent the year after that.