The Australian Energy Regulator’s (AER) latest Wholesale Markets Quarterly Report reveals that average annual wholesale electricity prices in the National Electricity Market (NEM) fell by between 44% and 64% and average annual east coast gas market spot prices fell by 43% in 2023.
This was attributed to milder weather conditions, lower fuel costs, fewer coal supply issues and an increase in cheap wind and solar supply.
The report also shows wholesale electricity prices during the October to December 2023 quarter fell in NSW, VIC and SA but increased in QLD and TAS compared to the previous quarter, with gas prices on the east coast spot market increasing slightly compared to the previous quarter.
Both electricity and gas prices during the quarter remained well below the record prices of 2022 and were now closer to longer term annual averages. Once retailers’ wholesale costs adjust to the lower prices going forward, prices faced by consumers should reflect these lower costs.
