This report finds that Australian household energy bills are set to halve by 2050, leaving ‘policy room’ for the federal government to cut emissions in the electricity sector without hurting households.

Modelling for the report shows that cutting greenhouse gas emissions from electricity in line with the net-zero 2050 national target results in average household energy bills of about $3,000 in 2050 – down from an average of about $5,800 today.

The report recommends a three-pronged strategy to accelerate the push to net zero while keeping the lights on and household costs down:

1. use 2026’s planned review of the Safeguard Mechanism to explore how it can help the electricity sector get to net zero at lower cost.
2. maintain and extend programs to ensure that the benefits of electrification are available to all households, particularly those on low incomes and in rental and multi-unit properties.
3. continue reforms to make planning approvals for transmission faster and easier, and build social licence in host communities.

The report is accompanied by chart data and a modelling report.