Australian Energy Council: Australian energy prices among the lowest in the world - Canstar Blue

Australian Energy Council: Australian energy prices among the lowest in the world – Canstar Blue

Australia has been revealed to have among the lowest electricity prices in the world, according to a new report from the energy competition watchdog.

An analysis by the Australian Energy Council (AEC) found that household energy prices in the country are the 10th lowest compared to the 38 participating OECD countries.

OECD countries are those members of the Organization for Economic Co-operation and Development (OECD). These are typical democracies such as the United States, the United Kingdom, Germany, France, and Canada.

AEC data shows the average price per Kilowatt-hour (kWh) of electricity in Australia was equivalent to 17.6 US cents, well below the OECD countries average at 24.2 US cents/kWh.

Australian Energy Council analysis of 2022 OECD energy price data

Source: Australian Energy Council

These findings are consistent with a separate report by the consumer watchdog that was recently disclosed Electricity supply costs were at their lowest level in eight years.

drop Wholesale electricity prices It helped bring cheaper costs to Australians, AEC chief executive Sarah McNamara said.

“Consumers have benefited from lower wholesale prices that are pouring into household bills,” she said. This assessment of how much Australian homes and businesses are paying shows that our electricity supply is competitive internationally, and that retailers pass on savings to customers.

“The competitive retail market also helps keep electricity costs low through market offerings that offer better value than government-determined regulated virtual offerings.”

The highest prices for household electricity were recorded in Germany, the Czech Republic and Poland, while Canada, Iceland and Norway were among the cheapest.

Australia is currently ranked 14th among the lowest commercial electricity out of 35 countries in the Organization for Economic Co-operation and Development.

Compare electricity prices

Below are some of the cheapest deals posted from retailers in our database which includes a link to the retailer’s website for more details. These are products from referral partners†. These costs depend on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes an overall energy usage of 3900 kWh/year for a residential customer on a single rate. Please use our comparison tool to make a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase.

Below are some of the cheapest deals posted from retailers in our database which includes a link to the retailer’s website for more details. These are products from referral partners†. These costs depend on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes an overall energy use of 4,000 kWh/year for a residential customer on one rate. Please use our comparison tool to make a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase.

Below are some of the cheapest deals posted from retailers in our database which includes a link to the retailer’s website for more details. These are products from referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes an overall energy use of 4,600 kWh/year for a residential customer on a single rate tariff. Please use our comparison tool to make a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase.

Below are some of the cheapest deals posted from retailers in our database which includes a link to the retailer’s website for more details. These are products from referral partners†. These costs are based on the SA Power network in Adelaide but rates may vary depending on your circumstances. This comparison assumes an overall energy use of 4,000 kWh/year for a residential customer on one rate. Please use our comparison tool to make a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase.

What is the reason for low electricity prices?

The decline in wholesale electricity prices helped to rise rooftop solar energyJared Mullane, energy editor at Canstar Blue, said it has helped lower energy costs for Australian bill payers.

“With more renewable generation coming onto the grid, thanks in large part to Australia’s love of solar power, it is playing an important role in lowering home bills for customers,” he said. “The Australian Energy Council report shows that retailers are generally doing the right thing by passing on savings to their customers.”

Lower fuel costs for coal and gas as well as lower grid costs also contributed to lower electricity prices.

However, the Renewable Energy Commission reports that the cost of government reforms and environmental plans is increasing, with small renewable energy certification schemes on the rise and large-scale renewable energy targets.

In ACT alone last year, the cost of financing renewable energy goals jumped 133 percent, Which saw an increase in home energy bills in Canberra.

Energy bills in Australia usually consist of five main charges; Network costs (45%), wholesale costs (32%), environmental costs (10%), retail costs (10%), retail margins (3%).


Image credit: Lumpini/Shutterstock.com, Australian Energy Council.


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