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 September - October 2020 

 

  • Increased supply from renewable energy sources and lower demand conditions have continued over the past month. Wholesale prices continue to trade sideways. The wholesale market continues to lack a clear direction with continued concerns over longer-term demand levels once the economy can emerge from pandemic. Our key observation is that prices are unable to remain at or below the cost of production indefinitely. Average prices are expected to continue sideways until demand increases or coal prices rise sufficiently to affect production costs. While summer pricing is likely to produce short-term price fluctuations, the medium-term outlook remains below historical averages.

  • Spot prices continue to drift lower on the back of lower demand and increased supply from renewable energy sources, which are firmed by gas generators. Gas prices have declined to historical lows. Electricity spot prices are likely to remain at, or below, the short run marginal cost of generation for each of the state markets.

  • 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.