Today the AEMC, the electricity market rule maker, released their Electricity Price Trends Report looking at power prices today and into the future. Flow Power, Australia’s fastest growing business electricity retailer, celebrates the recognition of the problems caused by mixed signals in the power market.
The report predicts a reduction in power prices by 6.2 per cent over the next two years from mid-2018 onwards. It highlights the lack of transparency experienced by energy users as they are disconnected from the signals of the market.
“The power market is changing. Customers need to be reconnected to the signals of the market. This report highlights the opportunity posed by demand response as a source of dispatchable capacity,” states Managing Director of Flow Power, Matthew van der Linden.
“Stable policy frameworks and new models for buying power such and Corporate PPAs will drive further investment in low cost renewable technology. When combined with demand response, Corporate renewable PPAs can deliver savings of up to 50 per cent on power costs for businesses.”
Flow Power’s customers are able to actively respond to peak prices because they are connected to the signals in the market. At peak periods Flow Power’s customers can reduce their demand on the grid by up to 45 per cent.
Also noted in the report is the stabilisation of network costs. The recent announcement of AER’s Demand Management Investment Scheme opens up more incentives for networks to look to non-network solutions such as demand response programs.
Business users across Australia are currently being offered power contracts at up to 300 percent more than a year ago. This report from AEMC shows the impact of clear market signals have on delivering affordable, sustainable and reliable power to Australians.
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