A new report by the Australian Energy Market Commission (AEMC) has found that household electricity bills are expected to fall by an average of $117 (8.7%) by 2023.

All states in the National Electricity Market - Queensland, NSW, Victoria, South Australia and Tasmania - will see electricity prices fall, a welcome relief given up to 96% of Australian households still list rising energy costs as a major concern

Only the ACT is expected to see electricity prices rise, by $45 over the next three years.

Western Australia and the Northern Territory were not included in the report.

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Update resultsUpdate
BankSavings AccountBase Interest Rate Max Interest Rate Total Interest Earned Introductory Term Minimum Amount Maximum Amount Minimum Monthly Deposit Minimum Opening Deposit ATM Access Joint Application TagsFeaturesLinkCompare
4.40% p.a.
5.75% p.a.
Intro rate for 4 months
then 4.40% p.a.
$980
4 months
$0
$250,000
$0
$0
Featured
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
4.75% p.a.
5.35% p.a.
Intro rate for 4 months
then 4.75% p.a.
$1,001
4 months
$0
$249,999
$0
$0
Featured
  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
Bonus rate of 5.50%
Conditions apply.
5.50% p.a.
$1,128
$0
$100,000
$0
$0
Featured *Rate varies on savings amount
  • Deposit $500 per month to get bonus interest
  • 5.50% p.a. available on total savings up to $100k.
  • 5.00% p.a. applies to savings between $100k-250K.
  • Tiered bonus rates apply. (TMDs at ubank.com.au)
0.55% p.a.
Bonus rate of 4.95%
Conditions apply.
5.50% p.a.
$1,128
$0
$100,000
$1,000
$0
  • Deposit at least $1,000+ each month from an external source
  • Make 5 or more eligible transactions
  • Grow your savings balance each month
Bonus rate of 3.25%
Conditions apply.
5.25% p.a.
Intro rate for 4 months
then 3.25% p.a.
$790
4 months
$0
$1,000,000
$50
$1
  • Earn up to 5.25% p.a. interest on balances up to $1M. T&Cs apply.
0.50% p.a.
Bonus rate of 4.85%
Conditions apply.
5.35% p.a.
$1,097
$1
$50,000
$500
$1
0.05% p.a.
Bonus rate of 4.95%
Conditions apply.
5.00% p.a.
$1,023
$1
$250,000
$20
$0
0.05% p.a.
Bonus rate of 5.45%
Conditions apply.
5.50% p.a.
$1,128
$0
$50,000
$1,000
$0
For customers aged 14-35 years
0.05% p.a.
Bonus rate of 5.30%
Conditions apply.
5.35% p.a.
$1,097
$0
$250,000
$1,000
$0
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of . View disclaimer.

Driving the drop in electricity prices is lower gas prices and the introduction of new energy sources like solar and wind.

“It’s great to see prices falling because at the AEMC what drives us is how to keep the lights on and costs down in a decarbonising power system,” AEMC Chief Executive Benn Barr said.

“The three key drivers of household electricity bills – wholesale costs, network costs and environmental costs – are all falling, which accounts for the overall drop that we are seeing.

“There are also regional differences across states and territories in the national electricity market that will affect price outcomes. And what energy offer you have and how much you use will also affect your bill.”

Screen Shot 2020-12-21 at 10.27.37 am

Source: AEMC

South Australians will see the biggest savings, with electricity prices forecast to fall by just over $200 by 2023.

South East Queenslanders aren't far behind, with an estimated $190 yearly saving on their power bill. Victorians will see a $170 decrease on their power bill, followed by Tasmanians who will save $70 a year.

Residents in NSW can expect a $30 saving.

Read: Neobank 86 400 launches 'energy switch' tool

The report predicts electricity prices will fall over the next two years before rising slightly in 2022-23, as capacity decreases with the Liddell Power Station due to close.

But Mr Barr said the outcome for 2023 prices may be different following recent announcements on increasing renewable energy capacity in both NSW and Victoria.

“We conducted our analysis before those announcements were made and so our numbers do not reflect the impact those developments could have on prices," he said. 

"In any case, the overall figures show that prices in 2023 will still be lower than they are today."

[See also: How to make your home more energy efficient]

Photo by Rodion Kutsaev on Unsplash





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