New data from the Australian government suggests that Far North Queensland households can expect some relief on their electricity bills, thanks to recent government intervention. According to the analysis of ASX energy price data by the Treasury, the market has not seen the predicted sky-high prices for 2022 following government intervention. Instead, the data shows a significant drop in wholesale prices in Queensland of 46% in February 2023, compared to November 2022.
The federal government’s four-point plan, implemented in December, included capping gas prices at $12 a gigajoule for a year and a temporary coal price cap of $125 per tonne in NSW and Queensland, resulting in lower electricity bills for Australians than initially predicted in 2023. This plan followed the Albanese government’s prediction in October that energy prices could rise by 30% this year.
Treasurer Jim Chalmers said that the relief plan is working, with encouraging signs that the benefits are starting to take effect. The Albanese government aims to continue delivering responsible cost of living relief and address the inflation challenge in the economy.
While any power bill relief offered by the government is welcome, supply and demand issues, particularly in the gas sector, could lead to high prices in the future, according to Nationals leader David Littleproud. He suggests that the government needs to focus on supply in the long term to avoid such issues.
Inflation, a significant factor in energy prices, continues to rise, with the Reserve Bank of Australia hiking interest rates to slow it. However, the bank also notes that the energy plan is taking some of the sting out of high power prices and helping to curb inflation. The Reserve Bank expects that increases in wholesale costs over the next year will be dampened by the Australian Government’s Energy Price Relief Plan.
Overall, the recent government intervention has provided relief for Far North Queensland households, resulting in lower electricity bills than predicted for 2023. However, the government needs to focus on long-term supply to avoid future price increases, and inflation remains a factor in energy prices.
It’s worth noting that households in Cairns with solar panels installed are less affected by energy price rises and volatility in the wholesale energy market than those without solar. By generating their own electricity, these solar households can significantly reduce their reliance on the grid, especially during times of high demand and energy price spikes.
Solar power is a reliable and affordable alternative to traditional fossil-fuel-generated electricity, with the added benefit of reducing carbon emissions. In addition to saving money on electricity bills, households with solar panels installed are also helping to build a more sustainable future for themselves and their communities.
In summary, while recent government intervention has provided relief for households in Cairns and Far North Queensland on their electricity bills, installing solar panels is a proactive step that can reduce reliance on the grid and mitigate the impact of future energy price increases and volatility.
Want to find out how much you can save with solar panels? Click here to find out more!