Electricity prices are forecast to fall in every Australian state and territory this financial year, the government's Australian Energy Market Commission (AEMC) says.
Over three years ending June 2017, electricity prices are expected to fall in most states and territories.
The forecasted drop in prices is attributable to electricity oversupply in the National Energy Market, increased retail competition in several states, removing the Carbon Tax and reduced spending on poles and wires (grid infrastructure), AEMC Chairman John Pierce said.
Increased competition in electricity markets has given consumers opportunities to switch electricity providers and save between seven and 16 per cent on better deals, Mr Pierce said.
“We would encourage consumers to take advantage of competition between service providers by shopping around and choosing a better deal to save on their bills,” Mr Pierce said.
St Vincent de Paul's spokesperson Gavin Dufty said lower electricity prices, if they follow the forecasts, would help Australians pay their bills.
However, changes in gas prices needed to be watched, he said.
”There are forecasts for increased gas prices,” Mr Dufty said.
He encouraged consumers to chase discounts, even if they were not advertised.
“People need to shop around,” he said.
“Call the current retailer you’re with.
“Usually you will get a discount.”
Selling the state owned electricity assets in NSW could cause prices to rise, a report from the McKell Institute has said.
The report said privatising the transmition and distribution lines would lead to higher prices.
"The average NSW customer is likely to end up paying nearly $350 more due to higher overhead costs resulting from privatisation," the report said.
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