This 10-year outlook of residential electricity prices in the National Electricity Market (NEM) finds that residential electricity prices are projected to fall by about 13 per cent over the next 10 years under the base case scenario, largely due to anticipated increases in renewable generation. 

The report recommends timely and efficient investment in renewable generation and transmission, effective integration of consumer energy resources (CER), and addressing barriers to electrification for all households.

Findings

• Electrification should reduce household energy costs: a household that fully electrifies could reduce their energy expenditure by 70%.
• Delaying the connection of renewable generation and transmission into the market would put upward pressure on residential electricity costs.

Recommendations

1. Ensure timely and efficient investment in connecting renewable generation and transmission to the market, as electricity demand increases with electrification.
2. Ensure the new demand from electrification is managed well requires the coordinated use of Consumer Energy Resources (CER) such as electric heat pumps and EVs.
3. Ensure the broadest spectrum of households can take advantage of solar and batteries and can access a range of EV charging options.