Energy

Network charges — the poles, wires and pipes that deliver energy to homes — make up approximately 40–50% of a household electricity bill. These are set by regulated network businesses and reviewed by the AER every five years. The current regulatory period runs to 2025–26 and locked in significant network investment costs from the transition to renewables.

Wholesale electricity prices reflect the cost of generating power and are determined by the National Electricity Market (NEM). South Australia's high retail prices largely reflect its grid structure and historically high wholesale price exposure, though its growing share of rooftop solar is starting to bring average bills down.

The energy transition is creating short-term cost pressure even as it promises long-term relief. Retiring coal plants require replacement with new capacity — gas, batteries, and transmission — which has upward pressure on network charges in the current period. The federal government's Energy Bill Relief Fund has provided targeted rebates that have partially offset bill increases for eligible households.

Gas price dynamics have been particularly sharp in eastern Australia since 2022. Australia exports significant volumes of LNG, which has tethered domestic gas prices more closely to international prices than was historically the case. The Australian Competition and Consumer Commission (ACCC) has monitored the domestic gas market closely and flagged concerns about supply adequacy.