There has been hope that today's release of the energy regulator's draft benchmark prices will provide relief to people facing skyrocketing power bills. The truth is, that was always optimistic. Here's why power prices are not dropping much — yet.
It's almost two years since Australia's energy system was thrown into chaos by a perfect storm of problems.
Just a few months ago, on the back of news that wholesale power prices had fallen considerably in the final three months of 2023, there had been hopes that bills might tumble.The truth is that power prices were always likely to stay up.To understand why, it might be useful to know what goes into your bill and, by extension, what was driving the regulators' thinking.Behind the bill you receive every few months sits an entire supply chain.
The wholesale cost of power depends on a range of things, but good examples include the price of coal and gas, the availability of plants, or even just the weather.Take electricity customers who are part of the Energex network area in south-east Queensland. One way to do this is through what's known as the futures market, which predicts the cost of electricity at a future date.
The central bank could start cutting interest rates faster than the market expects, causing variable mortgage rates to tumble.It's a similar story for energy companies that might have locked in contracts when the wholesale market was going ballistic.This is the long tail of the energy crisis, and why we'll all be paying for it for some time yet.The million-dollar question in energy markets is whether prices will continue to fall and, if so, by how much.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Australia’s power regulator orders price cuts of up to 7.1% for households as generation costs easeThe regulator released its draft ‘default market offer’ for 2024-25 which sets the maximum amount retailers can charge for power
Read more »
Why big business would rather send uranium offshore than build nuclear plants in AustraliaThe argument to re-examine the merits of nuclear power in Australia has been countered with concerns about the high cost of building the plants. But the rising uranium price is another issue — and Australia being a major supplier doesn't guarantee cheap power, writes Ian Verrender.
Read more »
How the purchase price of new GWM cars has leapt in Australia since 20207NEWS brings you the latest local news from Australia and around the world. Stay up to date with all of the breaking sport, politics, entertainment, finance, weather and business headlines. Today's news, live updates & all the latest breaking stories from 7NEWS.
Read more »
2024 JAC T9 price and specs: Chinese challenger shapes up for Australia7NEWS brings you the latest local news from Australia and around the world. Stay up to date with all of the breaking sport, politics, entertainment, finance, weather and business headlines. Today's news, live updates & all the latest breaking stories from 7NEWS.
Read more »
South32 share price; Groot Eylandt, Cyclone Megan,The future of one of the Northern Territory’s most valuable mining project is in doubt after Cyclone Megan ripped through it and threatened a power crisis.
Read more »
Big W is selling a designer Michael Kors handbag for less than half the price7NEWS brings you the latest local news from Australia and around the world. Stay up to date with all of the breaking sport, politics, entertainment, finance, weather and business headlines. Today's news, live updates & all the latest breaking stories from 7NEWS.
Read more »