RISING electricity prices and a new awareness of ways to cut use have slashed consumer demand.

An energy efficiency specialist with Ausgrid, Paul Myors, said: ''We have seen consumption falling by around 2 per cent a year for average household electricity use over the past four years. That goes against the long-term trend of a steady rise.

Rising prices ... electricity demand growth forecasts have been slashed. Credit:Reuters

''It could be the global financial crisis - and rising tariffs is a factor. We are seeing the impact of energy efficiency,'' he said, pointing to the move away from electric hot water systems, previously the main user of electricity in the home.

The fall is expected to lead the national electricity market body, the Australian Electricity Market Operator, to forecast overall cuts of 5 to 6 per cent in demand in the next decade - the first cuts in living memory.