Energy Action Price Index

Energy Action Price Index

What happened to electricity prices last month?

 

In the Australian energy market, the forward price of electricity for medium to large users fluctuates from day-to-day. Energy Action’s Price Index (Business) (EAPI) provides clarity to the market encompassing pricing from energy retailers via the Australian Energy Exchange (AEX).

EAPI represents the average commodity price of retail electricity paid by Australian businesses based on a Standard Retail Contract (commences in 6-months and operates for 2½ years). EAPI is created from the lowest cost offers submitted by retailers via the AEX and reflects the cost of commodity electricity to commercial and industrial customers.

For more information about the Energy Action Price Index, read our Frequently Asked Questions (FAQs).

Energy Action has redefined the EAPI for South Australia. From 2 February 2016 onwards the Standard Retail Contract for South Australia commences in 2-months and operates for 1 year. This change has been made to better reflect market conditions in South Australia where contract lengths have shortened considerably since late 2015. This change to the EAPI is limited only to the index for South Australia. Standard Retail Contract definition for all other states remains unchanged.

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The retail market in late June to early July

The downturn seen through May and early June continued through late June and into early July.

Other than the continuing decline in prices little changed over the period with Queensland remaining the cheapest index by a modest amount versus NSW and South Australia remaining the most expensive by far.

Contracts to the end of December 2020 are now commonly available in all NEM states other than Tasmania, with occasional pricing being seen into 2021 for NSW, Victoria and Queensland.

Longer term deals remain best value. For NSW and Queensland the discount for three year deals over two year deals narrowed from 0.50c/kWh in late June to 0.35c/kWh in early July whilst in Victoria the discount widened from 0.5c/kWh to 0.75c/kWh.

Customers are generally preferring two or three year contracts. Interest in contracts for a single year is limited for all states other than South Australia where this contract tenure is a little more common.

From late June to early July the Index tracked as follows:

  • In NSW the index closed down 0.60c/kWh at 9.05c/kWh.
  • In Victoria the index closed down 0.65c/kWh at 10.10c/kWh.
  • In Queensland the index closed down 0.80c/kWh at 8.10c/kWh.
  • In South Australia the index closed down 0.25c/kWh at 16.00c/kWh.

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