Since our last wholesale rate update on February 17, electricity rates across NSW, QLD, SA and VIC have increased significantly. These wholesale price trends have been reflected with substantial increases in retail peak and off-peak rates for large market electricity customers.
Market Overview
| Average Futures Price Movement | Current Month to Date | 2 Months to Date | 3 Months to Date | 6 Months to Date | 12 Months to Date | 24 Months to Date |
| Since 1-Mar-2017 | 1-Feb-2017 | 1-Jan-2017 | 1-Oct-2016 | 1-Apr-2016 | 1-Apr-2015 | |
| NSW | Up 7.75% | Up 34.51% | Up 52.10% | Up 70.33% | Up 147.96% | Up 194.31% |
| QLD | Up 2.63% | Up 17.43% | Up 37.57% | Up 49.90% | Up 95.31% | Up 144.60% |
| SA | Up 10.88% | Up 13.51% | Up 14.08% | Up 19.90% | Up 59.20% | Up 169.06% |
| VIC | Up 19.11% | Up 45.80% | Up 63.74% | Up 82.75% | Up 194.74% | Up 282.27% |
Source: www.asxenergy.com.au
Note: The above rates are based on the average of Calendar Year 2017, 2018, 2019 base load futures prices.
New South Wales (Increase)
| Futures Price Movement since: | Current Month to Date | 2 Months to Date | 3 Months to Date | 6 Months to Date | 12 Months to Date | 24 Months to Date |
| Since 1-Mar-2017 | 1-Feb-2017 | 1-Jan-2017 | 1-Oct-2016 | 1-Apr-2016 | 1-Apr-2015 | |
| NSW average movement | Up 7.75% | Up 34.51% | Up 52.10% | Up 70.33% | Up 147.96% | Up 194.31% |
Wholesale futures prices in NSW trended up in March with an average total increase of 7.75%. This is reflected in the rates that are currently being offered by retailers to large market electricity customers in NSW:
| Rates in NSW | Current retailer offers (range): | |
| Low | High | |
| Peak | $0.12 / kWh | $0.20 / kWh |
| Shoulder | $0.12 / kWh | $0.20 / kWh |
| Off Peak | $0.06 / kWh | $0.11 / kWh |
Queensland (Increase)
| Futures Price Movement since: | Current Month to Date | 2 Months to Date | 3 Months to Date | 6 Months to Date | 12 Months to Date | 24 Months to Date |
| Since 1-Mar-2017 | 1-Feb-2017 | 1-Jan-2017 | 1-Oct-2016 | 1-Apr-2016 | 1-Apr-2015 | |
| QLD average movement | Up 2.63% | Up 17.43% | Up 37.57% | Up 49.90% | Up 95.31% | Up 144.60% |
Wholesale futures prices in QLD increased by a relatively low 2.63% in March. This is reflected in the rates that are currently being offered by retailers to large market electricity customers in QLD:
| Rates in QLD | Current retailer offers (range): | |
| Low | High | |
| Peak | $0.11 / kWh | $0.15 / kWh |
| Off Peak | $0.07 / kWh | $0.11 / kWh |
South Australian (Increase)
| Futures Price Movement since: | Current Month to Date | 2 Months to Date | 3 Months to Date | 6 Months to Date | 12 Months to Date | 24 Months to Date |
| Since 1-Mar-2017 | 1-Feb-2017 | 1-Jan-2017 | 1-Oct-2016 | 1-Apr-2016 | 1-Apr-2015 | |
| SA average movement | Up 10.88% | Up 13.51% | Up 14.08% | Up 19.90% | Up 59.20% | Up 169.06% |
Whilst South Australia remains the most expensive, the market experienced the lowest price increases of around 3% over January and February. This translates into retail rates as follows:
| Rates in SA | Current retailer offers (range): | |
| Low | High | |
| Peak | $0.16 / kWh | $0.19 / kWh |
| Off Peak | $0.08 / kWh | $0.10 / kWh |
Victoria (Increase)
| Futures Price Movement since: | Current Month to Date | 2 Months to Date | 3 Months to Date | 6 Months to Date | 12 Months to Date | 24 Months to Date |
| Since 1-Mar-2017 | 1-Feb-2017 | 1-Jan-2017 | 1-Oct-2016 | 1-Apr-2016 | 1-Apr-2015 | |
| VIC average movement | Up 19.11% | Up 45.80% | Up 63.74% | Up 82.75% | Up 194.74% | Up 282.27% |
Victoria continued to experience the most volatility of the NEM in March. Wholesale futures increased by an average of 19.11%, which brings the total increase for the past 6 months to 63.74%.
This is reflected in the rates that are currently being offered by retailers to large market electricity customers in Victoria:
| Rates in VIC
| Current retailer offers (range): | |
| Low | High | |
| Peak | $0.10 / kWh | $0.20 / kWh |
| Off Peak | $0.06 / kWh | $0.11 / kWh |
Futures market volatility is driven by the level of uncertainty about future electricity spot prices. Uncertainty is prevalent in the current market and that’s why futures rates have risen so dramatically.
About Leading Edge
Leading Edge Energy is an energy cost reduction consultancy. We assist our clients by applying a holistic lens to your energy costs whereby we guide you through the complete energy cost reduction cycle from rates minimization to energy efficiency, solar generation and battery storage.
Our initial review and assessment process is a complimentary service and you are not obliged to accept any offer that we recommend to you.
Call us today t. 1300 852 770
