MRC Report: Australian Retail Energy Prices in an International Context

an analysis of household electricity prices in australia compared to selected developed economies

Published: May 2024

Authors: Geoff Bongers PhD, Joshua Humphreys, Nathan Bongers

Gamma Energy Technology Pty Ltd

Executive Summary: David Hughes

With all the talk of Australia becoming a “renewable energy superpower”, many would be surprised to learn how much we still rely on fossil fuels. Fossil fuels in aggregate (brown and black coal, and gas) remain the dominant source of electricity — except Tasmania which is dominantly hydropower.

Yet our energy markets are changing, and these adjustments have coincided with Australians paying more than the average across the developed world for electricity. Rising electricity prices hurt families, increase the costs of production and fuel inflation.

While policy settings and external factors differ across nations, one thing is clear — affordable and reliable power is the foundation of any successful economy and society. Our future prosperity depends on it.

Australians are always eager to know how we compare to other countries. This report provides some comparisons that Australians will find confronting. The analysis demonstrates the distinct differences in generation technologies across Australia and selected competitor countries. Most importantly we investigate how our household energy prices stack up.

To provide an up to date and accurate analysis, the Menzies Research Centre commissioned experts at Gamma Energy Technology to analyse an immense collection of data from the International Energy Agency, which provides the most reliable central source for household electricity prices.