Energy market improving but electricity prices up 9-20%, regulator says

The news: Australia's energy market has improved in 2023 but many of 2022's challenges remain, according to the national energy regulator. The Australian Energy Regulator’s (AER) latest energy market report found average wholesale electricity and gas prices had eased from 2022's record highs, but retail prices have jumped.

The numbers: The report noted electricity bills increased between 9% and 20% in 2022-23 across all National Energy Market jurisdictions, despite rooftop solar generation growing by 15% to account for 9% of total generation in 2022.

The context: Russia's invasion of Ukraine in early 2022 catalysed a volatile year for energy prices worldwide, contributing to higher coal and gas costs in Australia. Federal and state governments took measures to cap coal and gas prices in order to ensure generators could supply sufficient capacity to the market, while offering bill subsidies to consumers, the report said.

What they said: "From a consumer affordability perspective it’s vital that effective whole-of-system integration occurs so that everyone can benefit from consumer energy resources such as rooftop solar and small-scale batteries and we avoid unnecessary and expensive grid and generation investment," AER Chair Clare Savage said in a statement.