Report After Report But Will Prices Go Down?

Prime Minister Malcolm Turnbull has said he will not introduce an emissions trading scheme, despite saying the opposite in 2010, because he wants to keep electricity prices down.

The Federal Coalition is considering it’s position amid several reports including the Australian Energy Market Commission’s report (out this week) that suggests the average yearly electricity bill will be jacked up by $78 from the middle of next year

As the ABC reports, AEMC chairman John Pierce pointed to the Federal Government's renewable energy target and the closure of Victoria’s Hazelwood coal-fired power station as the reason for the price rise.

In a statement John Pierce said "Across the national electricity market the generation mix is changing — with the large-scale renewable energy target leading to substantial investment in wind generation. This is contributing to the closure of coal-fired plants and increasing wholesale and retail prices."

The report estimates the closure of Australia's dirtiest coal-fired power plant will add $78 to the national yearly average power bill, $204 in Tasmania and $99 in Victoria.

This flies in the face of another report released this week by the Independent Pricing and Regulatory Tribunal which found the reform of the state’s retail electricity market has delivered increased competition and savings for households and businesses across NSW.

IPART’s Review of Performance and Competitiveness of the Retail Electricity Market highlighted that since the Government removed retail price regulation two years ago, 11 new retailers have entered the market, including 6 in the last year, increasing competition.

Tasmania and Queensland are the only states which will not have increased power prices from June.

The ACT will have the biggest increase — the report estimates Canberrans will pay 9.3 per cent more.

For 2016/17, the total average bill for the year is estimated to be $1,353 — a 4.4 per cent increase from the year before.