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 Mid October to Mid November

  •  Retail prices continued to tick up over the period with the index for NSW gaining 0.25c/kWh to close at 8.60c/kWh and with Victoria gaining a similar amount to close at 8.70c/kWh. The indexes for Queensland and South Australia also gained 0.2c/kWh and 0.4c/kWh respectively.
  • On the futures market prices also increased for calendar 2019 and calendar 2020 contracts across all states. As has been the case for many  months, the principal concern is with potential electricity supply shortfalls, possible generation reductions at Snowy Hydro and the continuously elevated price of gas all acting to push up prices for the hot season of Q1 2019.
  • Whilst discounts for longer term deals remain at typically <0.4c/kWh for 3 year terms versus 2 year terms, the price for both shorter and longer term contract has increased moderately over the period.
 
  • With COAG having deferred any potential decision on both reliability guarantees and renewables  targets until December the ongoing uncertainty over energy policy is set to continue.