The death of the carbon tax and changes to regulated prices in some states is making electricity cheaper in Australia, according to a NAB Group Economics report.
NAB economist Phin Ziebell says he expects average electricity prices to fall around 5%.
And this will have an impact on inflation with electricity prices making up just under 2% of total CPI (Consumer Price Inflation). The overall impact on CPI is likely to be around -0.1%.
But the price fall won’t be even across the country. Some states get cheap electricity, some more expensive.
Ziebell says he expects residential electricity prices to fall this quarter in New South Wales, Victoria, Western Australia and South Australia.
But prices will rise in Queensland.
Indicative price changes for all States except Tasmania and the territories:
Ziebell says the estimates should be treated with some caution because of increasing market complexity associated with price deregulation in New South Wales, Victoria and South Australia.
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