Richard Meade, Magnus Söderberg: Winter electricity prices are rising

Winter electricity prices are rising – how do we know we’re getting value for money?

Winter is coming to New Zealand and Australia, and with it come those inevitably higher power bills from heating our homes.

Professor Alan Brent: NZ energy crisis: electricity demand will jump as NZ decarbonises....

NZ energy crisis: electricity demand will jump as NZ decarbonises – can renewable generation keep up?

The prime minister has called it an “energy security crisis” and signalled a review of New Zealand’s electricity market as wholesale prices spike and industries suffer.

And he’s right – this year has seen pricing turmoil. August saw daily averages ranging between NZ$164.52 and $853.57 per megawatt hour (MWh). By comparison, August 2023 saw a maximum daily average price of $168.43 per MWh.

Point of Order: BCG report throws light on how we might avoid the power-price shocks that Aussies are facing

Retail electricity prices in Australia are expected to rise by 50% over the next two years, with Federal Treasurer Jim Chalmers said to be weighing up market intervention to stop those costs spiralling further.

The Australian Treasury has assumed in the federal budget presented in Canberra last night that retail power prices will increase by an average of 20% nationally in late 2022 and a further 30% in 2023/24.

These startling rises stem from Australia’s drive to decarbonise its electricity supplies. After enjoying a long run of cheap electricity, Australian consumers are now facing what will be a severe attack on household budgets.

By comparison, with 80% of our electricity already coming from renewable sources, New Zealand may escape such rises.