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Electricity Rates in Review – March 2017

Since our last wholesale rate update in December 16, electricity rates across NSW, QLD and VIC have increased significantly. Increases in South Australia were relatively subdued. These wholesale price trends have been reflected with substantial increases in retail peak and off peak rates for large market electricity customers.

Futures Price Movement since:Current Month to Date2 Months to Date3 Months to Date6 Months to Date12 Months to Date24 Months to Date
1-Mar-20171-Feb-20171-Jan-20171-Oct-20161-Apr-20161-Apr-2015
NSW – AverageDown 0.88%Up 23.90%Up 40.27%Up 57.10%Up 128.20%Up 179.84%
QLD – AverageDown 0.22%Up 14.22%Up 33.96%Up 45.99%Up 89.12%Up 142.13%
SA – AverageUp 0.07%Up 2.32%Up 3.11%Up 8.08%Up 36.58%Up 119.67%
VIC – AverageUp 0.28%Up 22.56%Up 37.49%Up 53.21%Up 142.17%Up 216.84%

Source: www.asxenergy.com.au

State By State 

New South Wales  (Increase)

Futures Price Movement since:Current Month to Date2 Months to Date3 Months to Date6 Months to Date12 Months to Date24 Months to Date
1-Mar-20171-Feb-20171-Jan-20171-Oct-20161-Apr-20161-Apr-2015
NSW – AverageDown 0.88%Up 23.90%Up 40.27%Up 57.10%Up 128.20%Up 179.84%

Wholesale futures prices in NSW trended up significantly in January and February with an average total increase of 40%.  This is reflected in the rates that are currently being offered by retailers to large market electricity customers in NSW:

Rates in NSW

(Feb 17)

Current retailer offers (range):
LowHigh
Peak$0.12 / kWh$0.15 / kWh
Shoulder$0.12 / kWh$0.15 / kWh
Off Peak$0.06 / kWh$0.09 / kWh

 

Queensland (Increase)

Futures Price Movement since:Current Month to Date2 Months to Date3 Months to Date6 Months to Date12 Months to Date24 Months to Date
1-Mar-20171-Feb-20171-Jan-20171-Oct-20161-Apr-20161-Apr-2015
QLD – AverageDown 0.22%Up 14.22%Up 33.96%Up 45.99%Up 89.12%Up 142.13%

Wholesale futures prices in QLD increased by close 34% during January and February 17. This is reflected in the rates that are currently being offered by retailers to large market electricity customers in QLD:

Rates in QLD

(Feb 17)

Current retailer offers (range):
LowHigh
Peak$0.11 / kWh$0.15 / kWh
Off Peak$0.07 / kWh$0.11  / kWh

South Australian (Increase)

Futures Price Movement since:Current Month to Date2 Months to Date3 Months to Date6 Months to Date12 Months to Date24 Months to Date
1-Mar-20171-Feb-20171-Jan-20171-Oct-20161-Apr-20161-Apr-2015
SA – AverageUp 0.07%Up 2.32%Up 3.11%Up 8.08%Up 36.58%Up 119.67%

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Whilst South Australia remains the most expensive, the market experienced the lowest price increases of around 3% over January and February. This translates into retail rates as follows:

Rates in SA

(Feb 17)

Current retailer offers (range):
LowHigh
Peak$0.16 / kWh$0.19 / kWh
Off Peak$0.08 / kWh$0.10  / kWh

Victoria (Increase)

Futures Price Movement since:Current Month to Date2 Months to Date3 Months to Date6 Months to Date12 Months to Date24 Months to Date
1-Mar-20171-Feb-20171-Jan-20171-Oct-20161-Apr-20161-Apr-2015
Victoria – AverageUp 0.28%Up 22.56%Up 37.49%Up 53.21%Up 142.17%Up 216.84%

 

Victoria continued to experience the most volatility of the NEM in January and February. Wholesale futures increased by an average of 37.50% This is reflected in the rates that are currently being offered by retailers to large market electricity customers in Victoria:

Rates in VIC

(Feb 17)

Current retailer offers (range):
LowHigh
Peak$0.10 / kWh$0.16 / kWh
Off Peak$0.06 / kWh$0.08  / kWh

Futures market volatility is driven by the level of uncertainty about future electricity spot prices. Uncertainty is prevalent in the current market and that’s why futures rates have risen so dramatically.

About Leading Edge

Leading Edge Energy is an energy cost reduction consultancy. We assist our clients by applying a holistic lens to your energy costs whereby we guide you through the complete energy cost reduction cycle from rates minimization to energy efficiency, solar generation and battery storage.

Our initial review and assessment process is a complimentary service and you are not obliged to accept any offer that we recommend to you.

Call us today t. 1300 852 770

 

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