A program created to ensure electricity consumers in New South Wales, South Australia and south-east Queensland receive fairer electricity prices is to be reviewed by the Department of Industry, Science, Energy and Resources (DISER).
Minister for Energy and Emissions Reductions, Angus Taylor said the Competition and Consumer (Industry Code – Electricity Retail) Regulations 2019, was introduced in July 2019 to lock in fairer electricity prices for customers in the three States.
Mr Taylor said the Code introduced Default Market Offer (DMO), which capped the price that electricity retailers could charge consumers on default plans and the reference price, a benchmark that let customers compare electricity plans using a single price.
“It was designed to protect loyal customers from excessively high standing offer contracts, while also acting as a reference price to make it easier for customers to compare offers from different retailers,” Mr Taylor said.
He said DISER’s review of the Code’s impact would ensure that loyal customers received low energy deals.
The Minister said the Review would consider how consumers benefitted from the DMO and the extent to which they had become more engaged in the market as a result of the reference price.
“Since the introduction of the DMO, and with the latest DMO for 2021-22, average residential customers who were on standing offers prior to the DMO, will see their bills fall by up to $780 in 2021-22 compared to what they would have paid before the DMO,” he said.
“Similarly, average small business customers remaining on standing offers could be up to $3,105 better off in 2021-22.”
Mr Taylor said people could contribute to the Review until 11 October by making a submission on DISER’s Discussion Paper, Competition and Consumer (Industry Code – Electricity Retail) Regulations 2019: Post-Implementation Review.
DISER’s 22-page Discussion Paper, including information on how to have a say, can be accessed at this PS News link.
