While the announcement of lower regulated electricity prices is welcome news, customers have been urged to continue to shop around for even cheaper competitive deals from their energy retailer.
The Australian Energy Regulator announced today that the price for 727,000 electricity customers on a standing offer will fall by up to $116 for households and $441 for small businesses from 1 July 2021.
Australian Energy Council Chief Executive, Sarah McNamara, said the Default Market Offer (DMO) should be recognised as a safety net, as it does not represent the cheapest deal for consumers and there are cheaper energy offers out there.
“Only around 9-12 per cent of residential customers are on the DMO. That’s because retailers offer much cheaper deals to customers who shop around, rather than settling for the price set by the regulator.
“Getting a cheaper deal is easy - speak to your retailer or use independent comparisons through the government’s Energy Made Easy website,” said Ms McNamara.
The most recent independent review of the competitive retail market reinforces that electricity customers on market deals make significant savings compared to those on default offers.
Ms McNamara says ACCC data shows customers who have switched to market offers are saving 17 per cent on average so are reaping the benefits of retailers’ efforts to keep prices down.
“The ACCC makes it clear that people who have contacted their retailer about their plans are on better deals.
“Our members will continue to pass on costs savings to customers.”
About the Australian Energy Council
The Council represents 21 major electricity and downstream natural gas businesses operating in the competitive wholesale and retail energy markets. These businesses collectively generate the overwhelming majority of electricity in Australia, sell gas and electricity to over 10 million homes and businesses, and are major investors in renewable energy generation.
An independent report has predicted power bills will continue to fall as new generation capacity enters the National Electricity Market.
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