Wholesale power prices soared 141 per cent, year on year, and households should brace for more

Households already battling rocketing living costs are facing more pain via their power bills, with the body that runs the electricity market saying prices in that sector have also surged in the past year. Key points: AEMO says wholesale electricity prices in the NEM rose 141 per cent in the first quarter compared with last year Coal plant outages, higher demand amid heatwaves, and surging gas prices are behind the wholesale price jump An energy analyst tips price rises of more than 40 per cent across the next two years if forecast pressures come to pass In its latest snapshot of the National Electricity Market, the Australian Energy Market Operator said wholesale costs soared 141 per cent in the three months to March 31 compared with the same period last year. The findings by AEMO came as Dale Koenders, the head of energy research at investment bank Barrenjoey, foreshadowed retail price rises of up to 20 per cent a year across coming years as power companies sought to pass on higher costs. NSW, Queensland hit hardest AEMO said outages at some coal plants had contributed to the most recent price hikes, as had increased demand on the back of heatwaves and historically high gas prices. Hamish Fitzsimmons from the Australian Energy Council, which represented power and gas retailers, said household bills would not feel the effects of higher wholesale prices immediately.