Most Australians will pay $28 less on their annual electricity bill within two years largely due to a measure soon to be killed off by the Morrison government that encourages renewable energy and cuts carbon emissions.

A report into residential electricity price trends by the Australian Energy Market Commission, due for release on Friday, comes as Energy Minister Angus Taylor repeated his government’s mantra on lowering electricity bills and downplayed a revolt from the states demanding more federal action on climate change.

The report found electricity prices will generally be stable or falling over the next two years due to a pipeline of new renewable energy supplies that will drive wholesale costs down.

The Australian Energy Market Commission says large-scale electricity projects supported by the Renewable Energy Target will drive falling prices over the next two years. The Morrison government will not extend the target after 2020. Credit:Joe Armao

By mid-2020, the average consumer will pay about $28 less than today, as the national average annual power bill falls from $1367 to $1338, the commission says.