{"id":75225,"date":"2023-05-26T02:00:55","date_gmt":"2023-05-25T15:30:55","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=75225"},"modified":"2023-05-26T00:16:33","modified_gmt":"2023-05-25T13:46:33","slug":"solar-electricity-price-hikes","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/solar-electricity-price-hikes\/","title":{"rendered":"AER Points to Solar PV as a Factor in Electricity Price Hikes"},"content":{"rendered":"

\"pylons<\/p>\n

Electricity prices in Queensland, NSW and South Australia will rise by as much as 23.9% in July, with the Australian Energy Regulator publishing its final Default Market Offer (DMO) determination for 2023-2024.<\/p>\n

Regional Variation in Electricity Price Rises<\/strong><\/h2>\n

How much of a rise you can expect depends on your distributor: in NSW, Ausgrid\u2019s price will rise by 20.8%, Endeavour by 21.4% and Essential Energy by 20.8%; in south-east Queensland, Energex customers will see a 21.5% rise; and in South Australia, SAPN\u2019s price will rise by 23.9%.<\/p>\n

Impact on Default Market Offer Customers<\/h2>\n

The rise will affect around 600,000 customers who are on the DMO.<\/p>\n

Insights from Australian Energy Regulator’s Release<\/h2>\n

In its media release<\/a>, the AER said:<\/p>\n

\u201cThe final DMO determination prices vary slightly from the draft announced in March, higher in some regions and lower in others, with wholesale energy costs continuing to be the predominant driver of increased retail electricity prices.\u201d<\/p><\/blockquote>\n

The regulator said the prices in the determination \u201cvary slightly\u201d from the draft announced in March: up in some regions and down in others. It attributed the price rises predominantly to wholesale energy costs.<\/p>\n

Further Adjustments and Considerations in Pricing<\/h2>\n

After the March draft, the AER said, it has factored in \u201cupdated wholesale, network, environmental schemes and retail costs\u201d, as well as inflation forecasts.<\/p>\n

It also reduced the retail allowance in NSW.<\/p>\n

Regulator’s Approach and Consumer Protection<\/h2>\n

AER chair Clare Savage said: \u201cIn setting the DMO price this year we have sought to protect consumers from unjustifiably high prices and at the same time allow retailers to offer consumers better deals than their standard plans.<\/p>\n

\u201cNo one wants to see rising prices, and we recognise this is a difficult time, that\u2019s why it\u2019s important for consumers to shop around for a better deal by using the free and independent bill comparison website www.energymadeeasy.gov.au and to check rebate and concession eligibility.\u201d<\/p><\/blockquote>\n

The AER\u2019s final determination can be downloaded here<\/a>.<\/p>\n

Factors Behind Rising Wholesale Contract Prices<\/h2>\n

The regulator said rising wholesale contract prices are rising partly because organisations signed expensive contracts before the government announced its intention to intervene in coal and gas prices.<\/p>\n

The unreliability of old coal-fired generators created an expectation of wholesale price rises, the AER said, as did the closure of the Liddell Power Station in NSW in April.<\/p>\n

Role of Solar PV in Electricity Price Changes<\/h3>\n

Solar PV also contributed to the price rises:<\/p>\n

\u201cPeakiness in the NSLP [net system load profile] is driven by the continued uptake of PV solar systems\u201d, as well as grid PV, leading to spot prices falling below base contract prices in the middle of the day.<\/p>\n

 <\/p>\n

\u201cThis may require retailers to purchase cap contracts to cover high demand peak periods, which are much more expensive,\u201d the determination said.<\/p><\/blockquote>\n

The AER said it will include the impact of solar PV on load profiles in future DMO decisions and will seek stakeholder input in the DMO 6 issues paper.<\/p>\n

Impact of Extreme Weather and Isolation on SA’s Prices<\/h3>\n

November 2022\u2019s extreme weather in South Australia (which led to rooftop PV shutdowns<\/a>) impacted wholesale prices in that state.<\/p>\n

The AER explained that SA\u2019s isolation from the national market required extra spending on ancillary frequency control services<\/a>, adding $1.63 per megawatt-hour to SA wholesale costs.<\/p>\n

Victorian Customers to Face Significant Increase<\/h2>\n

Victorian customers will also take a 25% hit, with the Essential Services Commission releasing its default offer<\/a> on Thursday. That increase represents around $352 annually for residential customers and $752 annually for small business customers.<\/p>\n","protected":false},"excerpt":{"rendered":"

Electricity prices in Queensland, NSW and South Australia will rise by as much as 23.9% in July, with the Australian Energy Regulator publishing its final Default Market Offer (DMO) determination for 2023-2024.<\/p>\n","protected":false},"author":23,"featured_media":75244,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[636],"tags":[],"class_list":["post-75225","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-electricity-prices","entry"],"acf":[],"yoast_head":"\nAER Points to Solar PV as a Factor in Electricity Price Hikes<\/title>\n<meta name=\"description\" content=\"AER's 2023-24 report reveals electricity price hikes in Australia. 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Just to briefly recap, last week Western Australians were told electricity prices would rise (again), harshing some of the buzz provided by the McGowan Government's recently\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Electricity bill increases - NSW, South Australia and South-East Queensland","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/electricity-nsw-sa-qld.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/electricity-nsw-sa-qld.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/electricity-nsw-sa-qld.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/electricity-nsw-sa-qld.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/electricity-nsw-sa-qld.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":75996,"url":"https:\/\/www.solarquotes.com.au\/blog\/energy-australias-prices-rise\/","url_meta":{"origin":75225,"position":1},"title":"More Customers Take the Hit: EnergyAustralia\u2019s Prices to Rise","author":"Richard Chirgwin","date":"June 19, 2023","format":false,"excerpt":"EnergyAustralia has announced its 2023 Default Market Offer (DMO), Victorian Default Offer (VDO) and Variable Market contract price increases. For those not versed in the Australian energy market, here's a quick explainer of those acronyms: Default Market Offer (DMO): This is a safety net for New South Wales, South Australia,\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"calculator, credit card and electricity bills","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/06\/ea-price-increases.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/06\/ea-price-increases.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/06\/ea-price-increases.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/06\/ea-price-increases.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/06\/ea-price-increases.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":92253,"url":"https:\/\/www.solarquotes.com.au\/blog\/electricity-price-rises-revealed\/","url_meta":{"origin":75225,"position":2},"title":"Electricity Price Rises Revealed: Here’s How To Avoid Being Hit","author":"Max Opray","date":"May 26, 2025","format":false,"excerpt":"Electricity bills are set to surge by up to 9.7% for some Australians from July, according to the latest reference price details released by the Australian Energy Regulator, although most households will see smaller increases. The Australian Energy Regulator has revealed the final Default Market Offer (DMO) for over half\u2026","rel":"","context":"In "Electricity Prices"","block_context":{"text":"Electricity Prices","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/electricity-prices\/"},"img":{"alt_text":"Electricity price increases - Australia","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/10\/2023-price-increase.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/10\/2023-price-increase.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/10\/2023-price-increase.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/10\/2023-price-increase.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/10\/2023-price-increase.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":72424,"url":"https:\/\/www.solarquotes.com.au\/blog\/dmo-vdo-electricity-increases-mb2862\/","url_meta":{"origin":75225,"position":3},"title":"Draft Electricity Price Decisions Bring Grim News","author":"Michael Bloch","date":"March 16, 2023","format":false,"excerpt":"Power bills look set to jump yet again for millions of Australian households and small businesses already reeling from the ongoing cost-of-living battle. Yesterday morning, the Australian Energy Regulator and the Victorian Essential Services Commission announced their draft decisions for the Default Market Offer (DMO) and Victorian Default Offer (VDO)\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Electricity price increases: Australia","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/03\/vdo-dmo-electricity.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/03\/vdo-dmo-electricity.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/03\/vdo-dmo-electricity.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/03\/vdo-dmo-electricity.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/03\/vdo-dmo-electricity.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":83154,"url":"https:\/\/www.solarquotes.com.au\/blog\/electricity-prices-australia-mb2907\/","url_meta":{"origin":75225,"position":4},"title":"Power Bill Relief Ahead – For Some","author":"Michael Bloch","date":"April 26, 2024","format":false,"excerpt":"The latest AEMO quarterly report published on Tuesday indicates average wholesale electricity prices for the first quarter of this year dropped significantly in most NEM regions. But relief in power bills won't match, and in some cases they could continue to rise. In a nutshell, here's how National Electricity Market\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Electricity prices in Australia","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/04\/electricity-prices-australia.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/04\/electricity-prices-australia.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/04\/electricity-prices-australia.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/04\/electricity-prices-australia.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/04\/electricity-prices-australia.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":89298,"url":"https:\/\/www.solarquotes.com.au\/blog\/bowen-electricity-dmo-mb3109\/","url_meta":{"origin":75225,"position":5},"title":"Bowen Pledges Not To Meddle With Power Price News","author":"Michael Bloch","date":"February 4, 2025","format":false,"excerpt":"Federal Minister for Climate Change and Energy Chris Bowen has said that unlike the previous Morrison Government in the lead-up to the last election, he won't be interfering with the timing of electricity Default Market Offer (DMO) announcements for 2025\/26. The Australian Energy Regulator (AER) sets Default Market Offer electricity\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Electricity prices: Default Market Offer (DMO) 2025\/26","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/02\/bowen-dmo-power-prices.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/02\/bowen-dmo-power-prices.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/02\/bowen-dmo-power-prices.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/02\/bowen-dmo-power-prices.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/02\/bowen-dmo-power-prices.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/75225","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/comments?post=75225"}],"version-history":[{"count":7,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/75225\/revisions"}],"predecessor-version":[{"id":75245,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/75225\/revisions\/75245"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/media\/75244"}],"wp:attachment":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/media?parent=75225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/categories?post=75225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/tags?post=75225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}