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 Feb & March 2020 

*Please note: We have identified an issue with the EAPI which is currently not reflecting the downward movement of retail pricing. Our team are currently investigating this issue and working to resolve it as soon as possible. 

  • Retail prices for Commercial & Industrial customers have continued to decline and future prices remain in downtrend. All states are at or approaching 2-year price lows. Price backwardation remains in excess of $20-$30/MWh from 2019 to 2022. Major reductions are noted for Cal 2021. 2023 futures have also begun moving downwards but lack trading volume liquidity. We expect 2023 prices to reduce further.

  • Prices in VIC, SA and QLD are at/or approaching the short-run marginal cost of production (for coal-fired generation). Current pricing may not be sustainable in the longer term. Contract prices are likely to increase to cover costs and provide adequate returns. Current market pricing represents opportunistic buying, particularly for 2021 contracts, or extending existing contracts to 2023. Current pricing favours fixed price agreements, particularly in NSW and QLD. However, we are continuing to see progressive purchase opportunities as a result of lower retailer margins.

  • Lower retail margins are the result of a recent battle for market share among energy retailers. This is great news for our commercial and Industrial customers. Energy Action’s auction platform and RFP procurement options allow our customers to benefit from greater price competition by using these procurement methods. We recommend our C&I customers never accept unsolicited offers from retailers or accepts an incumbent's offer, without asking us to benchmark the offer against the EAPI.