Power prices to spike again over summer as El Nino hits

Power prices are expected to spike further over summer, with an expected El Nino the culprit.

The national energy regulator has revised upwards its power price estimates for early next year, the Sydney Morning Herald has reported.

The forecast weather system is set to bring stronger heat over summer, leading to more power consumption as people try to stay cool.

The news comes as it's also confirmed wholesale electricity and gas prices rose in the three months to June.

This means energy retailers faced higher purchase expenses before passing on the costs to household power bills.

The closure of the Liddell coal fired power station was partly to blame for the rise, but the price increases remained well below the record levels seen a year ago.

The Bureau of Meteorology last month issued an El Nino alert, meaning it foresaw a 70 per cent chance of one forming.

Since then, the World Meteorological Organisation has declared an El Nino weather system has formed, but the Bureau has held off following its lead.

Nonetheless, hotter, drier weather is expected over the summer months.

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