Energy bills to fall as regulator reveals draft offer

Energy bills to fall as regulator reveals draft offer

Energy bills to fall as regulator reveals draft offer

WHAT IS A DEFAULT OFFER?

* The default market offer is a price cap on how much retailers can charge customers on their default energy plans

* It is a reference price for market competitors, according to the energy regulator, and is what retailers have to advertise their plans, offers and discounts against

WHAT IS HAPPENING TO AUSTRALIANS’ ENERGY BILLS?

* The Australian Energy Regulator has proposed modest tweaks to the default market offer compared to the previous two years

* This will result in lower energy bills to consumers in NSW and South Australia but slight price hikes for some residents in Queensland

WHO WILL BE AFFECTED BY THE PRICE CHANGES?

* Nine per cent of households and up to 20 per cent of small businesses will be directly impacted

* Majority of residential customers could get price cuts of 0.4 per cent to 7.1 per cent

* The remainder may have increases of between 0.9 per cent and 2.7 per cent, which will hit southeast Queensland the hardest

WHY WILL MANY AUSTRALIANS’ ENERGY BILLS GO DOWN IN PRICE?

* The decision is due to a reduction in wholesale electricity prices but this was partially offset by an increase in network costs

* It is estimated that price changes for all customers on standard retail plans will be less than the rate of inflation

* Most small business customers could see reductions 0.3 per cent to 9.7 per cent

* People have been advised to shop around with some deals as low as 18 per cent to 23 per cent below the market offer

VICTORIANS TO SAVE HUNDREDS OF DOLLARS DUE TO CHANGES

* The draft Victorian default offer was also released on Tuesday

* If finalised, it could slash about $112 (6.4 per cent) from residential bills and $266 (or seven per cent) for small businesses from July 1

WHO IN VICTORIA WILL BE IMPACTED?

* About 360,000 homes and 58,000 small businesses are on the Victorian offer

* This represents 13 per cent of Victorian residential customers and 20 per cent of small businesses

* There are also 176,000 customers in embedded networks, which are private electricity networks that serve multiple premises such as apartment blocks or shopping centres

* Essential Services Commission chair Kate Symons said prices could fall again if the downward trend in wholesale electricity continues

* The regulator’s final offer determination will be delivered in May, pending public consultations, and will come into effect from July

 

Holly Hales
(Australian Associated Press)



Generated by Feedzy