Consumers in Australia’s eastern states will benefit from a drop in household energy bills from July 1, as a cut in peak electricity prices and government energy rebates will provide relief for worth hundreds of dollars to cash-strapped families.
The Australian Energy Regulator’s default final market offer – a maximum price to ensure customers receive the lowest possible price – was released on Thursday, reducing the maximum amount of electricity electricity retailers can charge households in New South Wales by up to $28 to $2499, and in South Australia by $63 to $2216.
However, these figures do not include the home electricity rebate announced in the federal budget in mid-May, meaning bills will be another $300 lower than the default price.
The Australian Energy Regulator’s final default market offer – a maximum price to ensure customers receive the lowest possible price – was published on Thursday.
While the default offer in south-east Queensland will rise by up to $83 next financial year to $2052, this increase will be more than offset by the federal government’s rebate and an additional $1000 subsidy announced by the state Labor government.
In Victoria, where the default market offer is set separately by the state’s Essential Services Commission, prices for households will fall by up to 5.7 per cent, or $100, to $1,655, before the reduction is applied of 300 dollars.
In each state, between eight and 12 percent of households are enrolled in the default market offering, representing almost 500,000 customers.
However, the default offer will indirectly affect many more households, as major retailers will use state-specific limits as a benchmark to determine the final prices they set for the rest of their customers.
The regulator’s chair Claire Savage said that since last year’s default offer, there have been movements in wholesale and network costs, the two largest components of prices.
“The relaxation in wholesale prices has been offset by the pressures currently being seen on poles and wires – net prices,” Ms Savage said.
Energy Minister Chris Bowen (pictured) said the government’s investments in energy were reducing household bills.
Welcoming the AER’s final offer, Energy Minister Chris Bowen said the government’s investments in energy were reducing household bills.
“Today’s figures show a welcome downward trend in prices, but we know there is more to do, which is why we are rolling out our trusted renewable energy plan and providing direct energy relief for every home energy bill.”