Perth electricity price history: how Synergy rates have changed since 2007
Perth electricity prices have more than doubled in real terms since 2007. Here's the history of Synergy's A1 rate rises, where they came from, and what the trajectory means for Perth solar economics.
Perth households pay among the highest residential electricity prices in Australia. That's a dramatic change from the early 2000s when WA electricity was subsidised below cost. Understanding the trajectory of Perth electricity prices explains why solar economics work so strongly in WA, and whether further rises are likely.
Perth electricity price history: A1 rate by year
| Financial year | Synergy A1 rate (c/kWh, approx.) | Change from prior year |
|---|---|---|
| 2007–08 | ~13.5c | N/A |
| 2009–10 | ~16.5c | +22% |
| 2010–11 | ~19.2c | +16% |
| 2011–12 | ~22.5c | +17% |
| 2012–13 | ~26.0c | +16% |
| 2013–14 | ~26.3c | +1% |
| 2014–15 | ~26.4c | flat |
| 2015–16 | ~26.6c | flat |
| 2016–17 | ~27.5c | +3% |
| 2019–20 | ~28.0c | gradual rise |
| 2024–25 | 31.58c | about +13% over five years |
| 2025–26 | 32.37c | +2.5% |
| 2026–27 (from 1 Jul 2026) | 33.26c | +2.75% |
Figures before 2024–25 are approximate, taken from independent reviews of published Synergy tariff schedules. From 2024–25 onward they are the published Energy Policy WA and Synergy schedules.
Why Perth electricity was so cheap before 2007
Western Australia had one of the most heavily subsidised electricity prices in Australia through the early 2000s. The State Government subsidised Synergy (then Western Power) to keep household tariffs below cost recovery. At peak subsidy, Synergy was recovering approximately 65–70% of the cost of generation and distribution through retail tariffs. The rest was taxpayer-funded.
This was a deliberate policy choice: in a resource economy with many fly-in fly-out workers, cheap residential power was seen as a quality-of-life offset. It also reflected WA's relatively cheap coal and gas generation from SWIS assets.
The 2009–2013 price surge: ending the subsidy
The Barnett Government (2008–2017) committed to moving WA electricity prices to cost-reflective levels, eliminating the subsidy through a series of above-CPI annual increases. From 2009 to 2013, Perth electricity prices increased approximately 90% in nominal terms, one of the largest sustained residential electricity price rises in Australian history.
The reasoning was sound from a budget perspective: the subsidy was costing the State hundreds of millions of dollars per year and suppressing energy efficiency incentives. The social impact was significant for lower-income households.
By 2013, WA electricity prices had moved closer to (though not exactly at) cost-recovery levels. Subsequent rises moderated.
2013–2020: the plateau period
After the surge, price rises moderated significantly: typically 1–3% per year, roughly in line with CPI. This reflected:
- Completion of the subsidy removal program
- Declining gas generation costs
- Political sensitivity after the 2009–2013 experience
Solar's rapid price falls during this period (combined with the now-higher electricity tariff) made solar economics increasingly attractive from around 2011 onwards.
2020–2026: inflation-driven rises
From 2020, global energy market pressures (LNG price spikes, gas contract rollovers at higher rates, transmission network upgrade costs) began pushing Synergy's costs up again. The SWIS network has significant infrastructure investment requirements, and Synergy's supply contract renewals were occurring at higher LNG prices.
The result: annual rises resumed, at a steadier pace than the 2009–2013 surge. The A1 rate moved from 31.58c to 32.37c on 1 July 2025 (+2.5%) and to 33.26c on 1 July 2026 (+2.75%).
What happens from 1 July 2026
The 2026–27 tariff year brings a 2.75% increase: the A1 rate moves from 32.37c to 33.26c/kWh and the daily supply charge from 116.05c to 119.24c. The DEBS export rates are unchanged, so the gap between what you pay for grid power and what you earn for exported solar widens again.
Implications for solar economics
The cumulative rise from 13.5c (2007) to 33.26c (2026–27) is approximately 146% in nominal terms, roughly 60–70% in real (inflation-adjusted) terms. This is the primary driver of why Perth solar economics improved so dramatically from 2011 to 2026.
Key relationship: every 1c/kWh increase in the A1 tariff improves solar payback by approximately 0.3–0.5 years for a typical 10kW Perth system. A tariff at 40c/kWh would reduce payback periods by 2–3 years compared to current rates.
Will prices keep rising? The trajectory is generally upward, driven by:
- Ongoing SWIS network upgrade costs
- WA's transition away from coal (Muja power station closure)
- Higher gas prices as legacy contracts expire
- Capital investment in battery and demand-response assets
Perth electricity prices are unlikely to fall significantly in the medium term. Further rises of 2–5% per year are the base expectation from most WA energy analysts.
Perth electricity prices have risen approximately 146% in nominal terms since 2007, from ~13.5c/kWh (subsidised) to 33.26c/kWh in 2026–27. The largest increases occurred 2009–2013 as the Barnett Government removed below-cost subsidies. Subsequent rises have been more moderate. The long-run trajectory is upward, driven by SWIS network costs and gas price exposure, which means solar economics will continue to improve over time.
Money-relevant figures in this article are checked against primary sources. Here’s how we check our facts.
Calculate your savings
See how much you could save with solar, batteries, and smart tariff choices
Ready to reduce your energy bills?
Get personalised recommendations and free quotes from local installers in the WattMate network.