Impact on electricity prices
In addition to assessing progress towards the target, we are required to report on the impact of the Large-scale Renewable Energy Target on electricity prices in our 2016 annual statement.
Three key factors influence electricity prices:
- wholesale and retail electricity costs
- network charges, and
- environmental policies (Large-scale Renewable Energy Target, Small-scale Renewable Energy Scheme, feed-in tariffs and state-based schemes).
As shown in table 8, the Large-scale Renewable Energy Target accounted for an estimated 2.8 per cent (or an average $9.38 per quarter) of the average household electricity bill in 2016. This is an increase of $2.25 per quarter from 2015. This increase is consistent with the trajectory towards the 2020 target.
Table 8: Impact on electricity prices in 2015 and 2016
| Percentage of electricity prices accounted for by
the Large‑scale Renewable Energy Target | Average cost per quarter in average household electricity bill |
|---|
| 2015 | 1.9 per cent | $7.13 |
| 2016 | 2.8 per cent | $9.38 |