NSW electricity bills to rise $74 a year

NSW households are set to pay an extra $74 in electricity bills, following the retirement of Victoria's Hazelwood power station.

The latest Australian Energy Market Commission (AEMC) 2016 Residential electricity price trends released on Wednesday has warned of price increases across the nation.

The closure of Hazelwood coal-fired power station will add $78 a year to energy bills around the country, the analysis showed.

The report estimates that a typical NSW consumer will pay an extra $74 for their electricity in 2018/19 due to Hazelwood retiring.

NSW residential electricity prices are expected to increase by 3.9 per cent on average for each of the next two years largely due to a 16 per cent increase in wholesale energy costs, AEMC chairman John Pierce said.

Electricity prices are also affected by the price for gas through gas-fired power stations, which is expected to play a larger role in the market in the future.

"Any future increase in the price of gas will result in higher input costs for generators, flowing through to higher costs in the wholesale electricity market," said Mr Pierce.

The Council of Australian Governments energy council will meet in Melbourne on Wednesday to look at regulations around new interconnectors, and efforts to ensure cheaper gas supplies.

"Across the national electricity market the generation mix is changing - with the large-scale renewable energy target leading to substantial investment in wind generation. This is contributing to the closure of coal-fired plants and increasing wholesale prices," said Mr Pierce in a statement.