The Australian Energy Market Commission's 2020 report on residential electricity price trends showed across the nation, electricity bills were expected to fall by an average of $117 over the next three years.

Driving the savings was a 27.4 per cent fall expected in wholesale costs, as well as a 5.2 per cent reduction in environmental costs.

The average NSW residential electricity bill would fall from $1292 per year in 2019-20 to $1263 in 2022-23.

Victorians would see a decrease from $1132 in 2019-20 to $960 per year in 2022-23.

Residents of south-east Queensland were expected to save $190 on their electricity bills, Tasmanians would save $70, while South Australians would save $203.

However, the average annual bill in the ACT was set to rise from $1967 in 2019-20 to $2011 in 2022-23.

The $44 increase comes despite a 13.4 per cent fall in the wholesale cost of electricity.

The report does not include Western Australia or the Northern Territory.

The Australian Energy Market Commission said the rise was due to an increase in distribution and transmission costs, partly due to previous under-recoveries and higher operating expenditure.

Regulated network costs in the ACT were expected to increase by 14.6 per cent - or $78 per bill - over the next three years.

Federal Energy Minister Angus Taylor said the savings for most Australians came after the introduction of the Morrison government's "big stick" legislation, which required energy companies to pass their cost reductions onto consumers, as well as a price-cap to stop long-time customers being ripped off.

"Cheaper electricity puts more money in the pockets of hard-working Australians," Mr Taylor said.

"After what has been a tough year for everyone, news that electricity prices are expected to continue falling in 2021 is a welcome relief."

But while prices were forecast to fall over the next three years, the commission predicted a slight bump in prices when the Liddell power station closed in 2023.

The government has set a target for the electricity sector to deliver 1000 megawatts of new dispatchable energy to fill the gap left by Liddell.

The government had vowed to build a new gas power plant in the Hunter Valley if this target was not met but later backtracked.