Victorians could face an extra $100 a year on electricity bills under a state Coalition policy to halt two key transmission projects, according to new analysis that warns of a near 40% increase in wholesale prices by 2031.
The analysis, by consultancy Nexa Advisory and commissioned by non-profit group Environment Victoria, found that postponing the Western Renewables Link and VNI West would delay other renewable energy projects, potentially forcing the state to rely more on gas.
Wholesale prices set to jump 37%
As a result, the average wholesale electricity price could rise from $52.90 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 over the five-year period.
For small businesses, the extra cost could reach $4,719, and for large businesses it could be as high as $11,797 over the same period.
Long-term costs and emissions impact
By 2050, delaying the projects could add $3 billion to wholesale electricity costs and produce an additional 8.6 million tonnes of carbon dioxide emissions – equivalent to about a quarter of the state’s current annual electricity emissions.
The analysis underscores the potential economic and environmental consequences of the Coalition's proposed pause, highlighting the trade-offs between short-term project delays and long-term energy costs.
