Power Prices Dropping in Australia

0:00From the streets of Adelaide to the world, this is Adelaide news today. Power prices in parts of Australia are heading down next year, offering some relief from rising living costs. The Australian Energy Regulator has put out a draft default market offer for 2026-27 that sets maximum prices for households, and small businesses in Southeast Queensland, New South Wales, the Australian Capital Territory, and South Australia. Household bills could drop between 1.3 and 10.1%, while small businesses might seek cuts from 7.6 to 21.2%, depending on the area. This comes after wholesale electricity costs fell, thanks to more renewables flooding the grid during the day. Earlier this week, Victoria announced its own default offer with a 3% drop. It's a big change from the sharp 20% hikes back in 2022, triggered by Russia's invasion of Ukraine and local issues like flooded coal mines. AER Chair Claire Savage called it, welcome news after years of pain, but they're keeping a close eye on the Middle East conflict.

1:05Even with some recent wholesale price bumps from tensions there, costs are still lower than a year ago. Renewables and battery storage are helping keep things steady. A key new feature in the draft is the solar shareer offer, giving eligible customers in Queensland, New South Wales, in South Australia, 3 hours of. Free daytime power when solar peaks. It aims to shift usage from expensive evening peaks, potentially saving everyone money by easing demand on gas-fire plants. Overall, this could flatten out the grid and lower bills across the board, though final numbers won't factor in the latest global unrest. Shop around for deals, as the default offer is just a safety net. Support for this episode comes from our sponsor, see the description, your pillow, your podcast, your moment, made for listening in bed, S-O-L-I, solely pillow dot com.