The Outlook for Residential Electricity Prices in Australia's National Electricity Market in 2020

Australian electricity tariffs have increased by more than 10 percent per annum from 2009–2013 while inflation has remained below 3 percent. This can be contrasted with the previous 18 years, when electricity prices decreased in real terms. Policymakers are rightly focused on significant demand-side reforms and our analysis reveals this could result in electricity prices falling by 10 percent by 2020 in real terms.