26 September 2023

Energy regulator lowers power prices

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The Australian Energy Regulator (AER) has released its final determination for its ‘Default Market Offer’ for 2020-21, which will secure cheaper electricity prices across south-east Queensland, South Australia, and New South Wales.

According to the Minister for Energy and Emissions Reduction, Angus Taylor, about 720,000 households and small businesses will receive lower energy bills from 1 July as a result

Mr Taylor said the Default Market Offer was introduced in July last year to protect customers from excessively high standing offer contracts in south-east Queensland, South Australia and New South Wales.

He said the Offer also acts as a reference price to make it easier for customers to compare offers from multiple retailers.

“The Default Market Offer price update is great news for families and small businesses, many of whom will be dealing with the impact of the COVID-19 pandemic,” Mr Taylor said.

“Hundreds of thousands of hard-working Australian families and small businesses have already benefited from lower electricity bills since the Default Market Offer price cap was introduced,” he said.

“This update will give welcome relief to loyal energy customers, particularly during the COVID-19 pandemic.”

Mr Taylor said the AER determination locked in the savings for another year, with average residential customers in South Australia saving an additional $109 a year, while those in south-east Queensland will save an additional $62 a year.

He said small business customers would save an additional $815 on average in South Australia and $265 in south-east Queensland.

Prices for customers in New South Wales will decrease in most regions and will continue to remain well below prices from before July 2019, when the Default Market Offer was introduced, he said.

“During these tough economic conditions, I am pleased to see the loyalty tax for electricity consumers is now a thing of the past,” Mr Taylor said.

The AER’s Final Determination can be accessed at this PS News link.

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