Energy prices are back on the rise! Supply and demand factors both here in Australia and overseas are combining to put upward pressure on energy wholesale and spot prices. The Australian Energy Market Operator (AEMO) presented its outlook to its Consumer Forum earlier in August. Business Australia’s infrastructure and energy team attended and have highlighted what you need to know:
Supply has reduced
Energy pricing impacts
- Driven by shutdowns in Yallourn (VIC), Bayswater (NSW) and Callide (QLD) stations. The VIC and QLD generation closures will continue into 2022. AEMO delivered its expectations for the summer and some supply risks at peak periods duringlong warm periods exist.
- Gas based generation has encountered increased supply chain costs due to strong Asian market demand for gas.
Demand has increased
- Energy retail prices have been insulated from wholesale spot price rises and while some price increases are expected, they may not be large in the short term.
- High prices may encourage generators to defer planned outages until the larger generation units in QLD and VIC return to full capacity.
- Energy futures contract prices pushing upwards though not yet in 2017-19 range. It’s still a good time to negotiate a better deal on older energy contracts.
- The exception here is for those customers who are tied to a spot-priced tariff, the increases will have been felt immediately.
- Economic activity increased prior to the latest east coast lock downs due to large energy intensive projects coming online.
- Cold winter weather has increased the demand for both electricity and gas.
- If you are unsure of how the changes affect you, start by contacting your Business Australia Energy advisor for an energy bill health check.
- Now is the time to make sure you’ve tackled the low hanging energy efficiency fruit in the business. If you are considering a solar installation or expansion seek qualified advice.
Download the full infosheet PDF.
Business Energy Advice Program (BEAP)
To discover ways to save on energy costs, Business Energy Advice Program (BEAP) delivered by Business Australia can help.
There are many benefits of the program: understand your energy bills, learn tips to change old habits and there’s a wide range of resources to tap into. And by applying sustainable practices, it will spark savings and reduce your carbon footprint.
To find out if your business qualifies for BEAP, call 1300 415 224 or fill in the online form.