State-by-state, small market and large market, electricity and gas, here are our market insights for April 2024 delivered by our expert team of energy brokers.
Electricity market
VICTORIA
Large Market - C&I:
Electricity rates in Victoria dropped to around 18-month lows earlier this year. This is off the back of record renewable generation. Despite the major outage of Loy Yang Power Station on 13 February the market was relatively stable, producing rates similar to what we saw through COVID. However, the market is starting to bounce back.
Recommendation: If your contract is up for renewal in the next 12-24 months, we strongly encourage you to review your rates now while the market is low and relatively stable.
Small Market:
We are finding many Victorian businesses are on inflated rates from the 2023 price rise and are providing businesses with average savings of 10.9%.
Recommendation: We would definitely recommend all Victorian businesses to get their rates checked if you haven't done so in the last 12 months.
NEW SOUTH WALES
Large Market - C&I:
New South Wales saw a flat market when it comes to electricity rates for quarter one. With coal trading on the government-imposed price cap at around $125/tonne it’s hard to see electricity getting cheaper, especially with the looming threats of the coal-cap expiring on 30 June 2024 and the Eraring Power Station closure set for September 2025.
Recommendation: As seen in graph below, the market is starting to bounce back. If your contract is up for renewal in the next 12-24 months, we strongly encourage you to review your rates now while the market is low and relatively stable.
Small Market:
Businesses located in New South Wales is the market segment we can help the most right now, and generate the most savings. Retailers are coming in strong with competitive rates and discounts range from 17%-18% below the default market offer (DMO).
Recommendation: We have a strong base of customers who are reaping the benefits of getting their bills checked, so would strongly encourage you to get your bills checked too.
QUEENSLAND
Large Market - C&I:
Electricity rates in Queensland were relatively low thanks to the market's heavily reliance on black coal (approximately 74%), and coal being relatively stable.
The first unit of Callide Power Station came back online on 1 April with the two units (now three) up and running and a fourth coming back online soon.
Callide Power Station had been running at roughly 50% capacity for 518 days.
However, the market has increased significantly. The risks of the coal price-cap looms given nearly three quarters of the electricity generation relies on this price.
Recommendation: As seen in the graph below, power prices have bounced back strongly and are similar to this time last year, and who knows how high it will go. If your contract is up for renewal in the next 12-24 months, we strongly encourage you to review your rates now while the market is low and relatively stable.
Small Market:
Despite positive business sentiment across Queensland compared to the southern states, operators are still facing significant challenges and are looking for savvy ways to control rising costs.
Businesses in the Ergon network have been grappling with increases to tariffs, which really paves the way to pivot and look at solar for their site.
Recommendation: We've seen some strong savings for SME businesses in the sunshine state, so we strongly encouage you to get in touch for a free review. Alternatively, all queensland businesses should be exploring solar.
SOUTH AUSTRALIA
Large Market:
Business in South Australia have seen a sharp decline in electricity prices, producing the cheapest rates we’ve seen in 24-months.
This off the back of record renewable generation and a market that is 70% renewable electricity and 30% gas-fired power stations. With a healthy gas reserve, it’s likely South Australia with stay healthy through Winter.
Recommendation: If your contract is up for renewal in the next 12-24 months, we strongly encourage you to review your rates now while the market is low and relatively stable.
Small Market:
Businesses are able to access really sharp rates at approx 18.2% below the default rate. We've seen businesses around the Adelaide CBD and towards Port Lincoln really benefit from savings through our small market broking team.
Recommendation: The market is ripe for energy savings if you're a small market business based in South Australia. We strongly encourage you to get in touch for a free review.
