Last year, we looked at electricity prices in Australia in 2020 when the Black Summer had just ended and the world was still largely unfamiliar with the pandemic. It’s been a year since and things have changed considerably in many aspects, both in Australia and across the globe. As energy brokers, a particular interest of ours is how much a kWh costs for energy users in the country in 2021.
How much does 1 kWh cost in Australia in 2021?
As of March of this year, it seems that things are still improving for Australian electricity consumers.
Here’s a comparison of 2020 and 2021 electricity rates for the different energy consumer classifications in the country presented in AUD per kWh:
As you can see, in early 2021 there was a reduction in the cost per kWh across the board for commercial electricity consumers – a very welcome silver lining for Australians considering the events of the past year. Large and extra-large businesses, in particular, had more considerable decreases in their rates, achieving 26 and 20% reductions, respectively, whereas the other commercial consumers got an average decline of 4% and households almost 1.5% drop.
In 2020, we also went into detail comparing Australia’s first-quarter commercial electricity prices with certain markets. We looked into the same data this year as well and the table below shows what we found:
As the graphs illustrate, Australia’s rates are just below Germany and the UK, which present an average price of 0.33 AUD/kWh, and remain quite similar to Japan, with 0.27 AUD/kWh.
From this, we can see that in the early part of 2021, prices generally went down among the key markets shown in the graph as compared to the same period in 2020.
That said, electricity prices in Australia are unlikely to stay low forever. In fact, our May 2021 Electricity Market Update already reported rising prices. And with the world still grappling with the pandemic and its implications and uncertainties, commercial energy consumers will be well-advised to take any precautions that might keep them ahead of price volatility.
Take advantage of still-low electricity prices to save your business money
The Australian economy is opening up but undoing the challenges brought by the pandemic may take a while. Fortunately, electricity futures prices in Australia are still lower than historic averages, although they are rising. This means that there’s no better time than now to speak to an Energy Expert about how you can reduce your commercial or industrial electricity costs and gain more financial stability.
Not sure where to begin? Our Energy Experts will guide you through the process so you end up with the best energy deal available in the market. Simple. No fuss, no obligation.