Electricity prices have risen to record highs in the first quarter of 2019, according to the Australian Energy Market Operator’s (AEMO) Quarterly Energy Dynamics report. This won’t come as good news for Australians screaming out for cheaper gas and electric prices. With rising energy prices in Australia, people will have their say on election day, but why are prices so high?
What Caused the High First Quarter Energy Prices in Australia?
The AEMO’s report cited several factors for the high energy prices in Australia to kick off 2019, but the weather was a major factor.
Firstly, dry conditions across the country meant less hydro electricity was generated. The record-breaking heat also meant people were cranking up their air-conditioning units more often. The increase in power usage puts more strain on the national grid. It should be noted, however, that in some parts of Australia, the grid didn’t have to bear all of the increased use.
Solar panels across Australia actually provided relief, accounting for over half of the increased demand from AC units.
Can Coal Bring Cheaper Energy Prices Australia?
Coal prices continued to remain high, which further pushed energy prices up in Australia. Many coal generators cited quality issues or even coal conservation as a cause, and as a result, there may not be relief around the corner.
AEMO says they expect thermal coal prices to remain high into 2020, which affects pricing offers from coal-fired generators.
With the current Government busily spruiking the cheaper costs of coal generated energy, people will rightly be confused by these findings.
Are Your Getting the Best Deal?
If we continue to see rising energy prices Australia, customers will very wisely start shopping around for better deals. Billy Sumo can help you compare gas and electric plans to help put money back in your pocket. To compare energy plans, let Billy find you a better deal today!