Energy Action Price Index - Monitor and compare business electricity rates

 

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 1st July 2018 onwards the Standard Retail Contract for South Australia will has been recalculated for 30 months duration commencing in 6 months’ time. This puts the calculation of the South Australian EAPI on the same basis as those for NSW, Victoria and Queensland which remain unchanged. For further information on this change please read our Frequently Asked Questions (FAQs).

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Commentary for August - September 2020 

 

  • Lower primary energy costs, namely coal and gas, coupled with increased supply from renewable energy sources and lower demand have led to the lowest wholesale electricity prices since 2014-2015. Prices are approaching the average cost of electricity production in most states and are unlikely to drop further without a significant impact on the profitability of the generation sector.

  • Wholesale prices for Calendar Year 2021  and 2022 have traded sideways over the past month with the exception of South Australia where prices continue to trend slightly lower. Futures prices for 2023 remain flat. While in the short-term there is a greater possibility of increased price volatility due to summer demand, the medium-term price outlook remains below historical averages.

  • Retail pricing is following the wholesale trend with retailers competing aggressively for market share. Current market condition and retail price levels provide an opportunity for customers to lock-in favourable electricity rates. Retail prices are expected to rise over the medium term, in line with the wholesale market outlook, but for now, offer substantial savings to customers.