Victorians could pay almost $100 a year more for electricity under a state Coalition policy to halt two key transmission projects, according to new analysis that suggests it would result in a near 40% increase in wholesale prices by 2031.
Analysis by consultancy Nexa Advisory, commissioned by non-profit group Environment Victoria, has found postponing the Western Renewables Link and the VNI West would delay other renewable energy projects. Such a move could force the state to rely on using more gas.
As a result, the average wholesale electricity price could rise from $52.9 to $85.20 per megawatt hour – an increase of 37% – between 2027 and 2031. This would flow through to households, adding $472 to the power bills of a typical household – and up to $4,719 for a small business and $11,797 for a large business - over the five-year period.
By 2050, delaying the projects could add $3bn to wholesale electricity costs and produce an additional 8.6m tonnes of carbon dioxide emissions – akin to about a quarter of the state’s current annual electricity emissions.
