Bill help pays off
New government figures show energy caps are having a positive impact on power bills.
Treasury analysis of ASX data on energy prices shows the market has not increased to the forecast highs this year following federal government intervention.
The data shows a wholesale price drop of 41 per cent in NSW, 46 per cent in Queensland, 34 per cent in Victoria and 28 per cent in South Australia in February 2023 compared to November 2022.
Australians' electricity bills will be lower than predicted in 2023 after the federal government intervened in the energy market in December.
Its measures included capping gas prices at $12 a gigajoule for a year and a temporary coal price cap in NSW and Queensland of $125 per tonne.
Treasurer Jim Chalmers says there are “encouraging signs” that the relief plan is working.
“It will take some time for the benefits to fully flow through, but there are encouraging signs that our action is starting to work,” he said.
“We understand Australians are doing it tough. That's why the Albanese Government will keep its focus on delivering responsible cost of living relief and dealing with the inflation challenge in our economy.”
The central bank says interventions have taken some of the sting out of high power prices.
“Over this year and next, increases in wholesale costs are expected to be dampened by the Australian Government's Energy Price Relief Plan,” the Reserve Bank said in its Statement on Monetary Policy.