Gareth Hutchens

I grew up in an area that's next to where most of Victoria's power is generated through coal-fired power stations.

These are ageing machines.

They are quite literally buying the parts for them on eBay or making the parts through the ingenuity of the workers who are there.

These are far beyond their lifespan in many cases.

And the reason that we are transferring to renewable power is, first of all,

It's cleaner.

It's also cheaper to produce power.

But we have to build out this new electricity grid and also the ways of generation at the same time as we're farewelling these coal-fired power plants that provide kind of a base level of power.

As we get more amounts of battery capacity, we're seeing that big spike in the middle of the day when the sun is shining.

being transferred to the early evening when the demand is high.

So we're seeing prices fall because we are getting finally a taste of what we were always promised, which is an electricity grid that makes the most of renewables, pushes the excess into times when it is needed, when the wind isn't blowing, when the sun isn't shining.

and when demand is high.

So it really is an interesting time.

And it doesn't mean that this will continue.

It doesn't mean that next year it'll fall again and fall again and fall again.

They're still building out this grid.

But what I'm interested in, Gareth, and you know more about is

How do you think this fall in what is the default market offer, essentially like a kind of baseline deal?

It doesn't mean that everyone is on this offer.

In fact, only about one in 10 households are, but it's a reference point for all other power prices.