Cheaper Electricity Prices Await Australia’s Manufacturing Sector

Manufacturers in Australia should expect lower electricity prices in the future if the National Electricity Market (NEM) undergoes a proper reset based on the Australian Competition and Consumer Commission’s (ACCC) recommendations.

The ACCC released a report that provided 56 suggestions on how to reduce prices not only for business but also to households. The report’s recommendations came at the right time, following Australia’s poor ranking on global energy consumption.

Cheaper Energy

ACCC Chair Rod Sims said that the NEM remains “largely broken” partly due to power grid’s unchanged approach on competition, regulatory design and policy in the last 10 years. If implemented, the recommendations could provide cheaper costs for businesses by up to 24 per cent on average. On the other hand, an average household may experience a lower bill of up to 25 per cent.

While the report bears good news, manufacturers shouldn’t wait before taking action to reduce their energy consumption. Some simple steps to improve sustainability include choosing the right hydraulic separator or centrifugal pump for mechanical heating, ventilation and air-conditioning. It should learn from the property sector, which was the only energy-efficient sector based on an American Council for an Energy-Efficient Economy (ACEEE) report.

Global Rank

Australia fell two spots to become the 18th biggest energy consumer in the world for 2018, according to the ACEEE. The report ranked Italy and Germany as the world leaders for energy-efficiency while France, the U.K. and Japan completed the top five.

For a developed country, Australia’s rank is quite bothersome since it no longer has to use so much power unlike developing nations such as China and India. The latter countries fared better in the global rankings.

Conclusion

The ACCC’s report is a positive step towards the right direction, but companies still need to find other ways on how to improve their energy-efficiency. Their proactive approach will be helpful not just for business, but also to enhance the country’s global status on energy consumption.