HOUSEHOLDERS belted with huge power bills can expect only slight relief over the next two years as the size of price rises eases.
Victorians are tipped to endure higher average increases than most states, a price trends report reveals.
The state's electricity charges are estimated to be among the biggest in Australia by 2014-15, surpassed only by South Australia and the Northern Territory.
The smartmeter cost blowout, bushfire safety obligations, "green" schemes and other distribution costs are largely blamed.
The Australian Energy Market Commission report estimates annual average Victorian prices will rise 5 per cent plus GST over the next two years.
This compares with 11 per cent plus GST for this financial year.
Victorians on market offers, the most common type of residential tariff, are tipped to pay 31.5 cents per kilowatt hour in two years, exceeding projections for New South Wales, Queensland, the ACT, Tasmania and Western Australia.
The cost for those on published standing offers, rather than contracts, is expected to hit 35.2c/kWh by 2014-15.
Higher distribution network costs, which include replacing ageing infrastructure, are tipped to drive more than half the state's future power price increases.
"The main contributing factors to changes in Victorian household electricity prices are increased distribution network charges and the impact of environmental schemes on the retail component," the Electricity Price Trends Report notes.
But wholesale electricity prices are falling nationwide due to a drop in consumer consumption and the declining manufacturing sector.
"If current trends continue, overall wholesale prices are expected to remain flat, and we expect retail costs to flatten as well," AEMC chairman John Pierce said.
"The price impact of environmental initiatives is also moderating. The carbon price has already been factored into wholesale energy costs, and the impact of various state and Commonwealth environmental schemes is likely to slow from this year."
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