Wholesale electricity prices lower, consumer prices at record high

The national generators forum is concerned that savings are not being passed on to consumers 16000646 800476689 0 0 14027090 300

While shopping around for the best electricity prices, a canny consumer should be on the lookout for industry changes and governmental action, but also have an ear to the ground for market attitudes - factors which can influence shifts in services and costs.

A report in The Australian last week (March 23) said that consumers may not be part of a flow-on effect receiving benefits from a reduction in wholesale electricity prices.

The publication spoke with executive director of the National Generators Forum, Tim Reardon, who said that clement weather, a decline in manufacturing and reduced household energy needs had created an oversupply of electricity.

This in turn has led to reduced wholesale electricity prices, which have yet to be passed on to consumers, he asserted.

"Consumers are experiencing record high electricity prices and at the same time electricity generators are experiencing record low prices."

These claims come just a few days after reports that Australian electricity customers are paying up to 130 per cent more than Canadians and 70 per cent more than Americans for power.

Posted by Charlie Moore