Energy Action Price Index - Monitor and compare business electricity rates
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 1st July 2018 onwards the Standard Retail Contract for South Australia will has been recalculated for 30 months duration commencing in 6 months’ time. This puts the calculation of the South Australian EAPI on the same basis as those for NSW, Victoria and Queensland which remain unchanged. For further information on this change please read our Frequently Asked Questions (FAQs).
Commentary for February - March 2021
Index prices remain at the lower end of the of the current cycle. Current wholesale market contract prices are below each States short run marginal cost of generation. As a result it is difficult to see this trend continue beyond the short term without having significant implications with the generation sector. Therefore, it is difficult to see how electricity prices can drop further and remain at those levels for any extended period of time.
The price index for NSW is currently priced around 5.5c/kWh, while QLD & SA are both priced below 4.5c/kWh and Victoria at 4.0c/kWh. Current prices continue to offer significant savings and a great opportunity to forward contract. These savings can be used by businesses looking to invest in achieving Net Zero or RE100 goals.