Energy discounts to flow in 2024

The east coast gas price remains around $8Gj:

This has crashed power costs again:

Further aided by strong wind:

Even sticky power futures have fallen below $85MWh:

A break below $85MWh would be significant. The AER considers energy futures in its assessment of default market offers.

The next draft assessment will be in March for the 2024/25 year. Unless the grid melts down over the next few months, the prospective price cuts from July 1, 2024 should be significant.

But they will take quarters to flow through and, of course, if we had a government worthy of the name, it would never have happened at all.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.