Energy Action Price Index

Energy Action Price Index

What happened to electricity prices last month?

 

In the Australian energy market, the forward price of electricity for medium to large users fluctuates from day-to-day. Energy Action’s Price Index (Business) (EAPI) provides clarity to the market encompassing pricing from energy retailers via the Australian Energy Exchange (AEX).

EAPI represents the average commodity price of retail electricity paid by Australian businesses based on a Standard Retail Contract (commences in 6-months and operates for 2½ years). EAPI is created from the lowest cost offers submitted by retailers via the AEX and reflects the cost of commodity electricity to commercial and industrial customers.

For more information about the Energy Action Price Index, read our Frequently Asked Questions (FAQs).

Energy Action has redefined the EAPI for South Australia. From 2 February 2016 onwards the Standard Retail Contract for South Australia commences in 2-months and operates for 1 year. This change has been made to better reflect market conditions in South Australia where contract lengths have shortened considerably since late 2015. This change to the EAPI is limited only to the index for South Australia. Standard Retail Contract definition for all other states remains unchanged.

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The Retail Market in January to February 2019

  • Retail prices for Commercial & Industrial customers were little changed over the period tracking within a band of +/-0.25c/kWh across all states.
  • In January spot prices averaged close to 25c/kWh for Victoria and South Australia as a combination of high demand and generator failures due to high temperatures led to limited load shedding in those states. During February spot prices fell back to a more reasonable 11c/kWh level and while risks remain of high spot prices over the remainder of the Summer their likelihood decreases as we come into March.
  • AEMO continues to forecast load curtailments in the southern states for Summer 2020 of a similar magnitude to those experienced this Summer.
 
  • Dam levels for Snowy Hydro have fallen slightly since the end of December and now stand at around 28% compared to 40% at this time last year.
  • Large Scale Certificate prices continue to decline falling to around $40/certificate by mid February. The market is increasingly pricing in over supply of certificates as current and committed renewable projects exceed legislated minimum requirements.
  • Small Scale Certificate prices remain stable in the $35-38 range.