Saturday , June 22 2024

Power bills to be slashed across Australia’s southeastern states

Consumers across Australia’s eastern states are set to benefit from a fall in household power bills from July 1 as a cut to electricity price caps and government energy rebates deliver hundreds of dollars worth of relief to cash strapped families.

The Australian Energy Regulator’s final default market offer – a price ceiling to ensure customers receive the lowest price possible – was released on Thursday, lowering the maximum amount electricity retailers can charge households in NSW by up to $28 to $2499, and in South Australia by $63 to $2216.

However, these figures do not include the household electricity rebate announced in the federal budget in mid-May, meaning bills will be a further $300 lower than the default price.

The Australian Energy Regulator’s final default market offer – a price ceiling to ensure customers receive the lowest price possible – was released on Thursday 

While the default offer in southeastern Queensland will increase 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 $1,000 subsidy announced by the Labor state government.

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In Victoria, where the default market offer is separately set 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 $300 reduction is applied.

In each state, between eight and 12 per cent of households are signed up to the default market offer, representing almost 500,000 customers.

However, the default offer will indirectly impact many more households as major retailers will use the state specific caps as a benchmark to determine the final prices it sets for the rest of its customers.

The regulator’s chair Claire Savage said since last year’s default offer, there had been movement in wholesale and network costs – the two largest cost components of prices.

‘The easing in wholesale prices has been offset by the pressures currently observed in the poles and wires – network prices,’ Ms Savage said.

Energy Minister Chris Bowen (pictured) said the government's investments in energy were lowering household bills

Energy Minister Chris Bowen (pictured) said the government’s investments in energy were lowering household bills

Welcoming the AER’s final offer, Energy Minister Chris Bowen said the government’s investments in energy were lowering household bills.

‘Today’s figures show a welcome downward trend for prices but we know there’s more to do – which is why we’re delivering our reliable renewables plan and providing direct energy relief for every household energy bill.’

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