Monday , August 15 2022

The Government to set default energy prices


The federal government has published regulations for a security net at power prices in a push to reduce the energy cost to consumers.

The Australian Energy Regulator's draft decision on its Default Market Offer introduces a standard price from July to customers in NSW, South Australia and southeast Queensland.

The movement will reduce prices up to $ 218 per annum for residential customers, and up to $ 937 for small businesses.

Energy Minister Angus Taylor said the figure "will also act as a price of referral, which requires energy retailers to advertise their fixed and market proposals against a common price benchmark."

The plan has installed on those households that have not shopped around for the best deal and assaulting what is referred to as "loyalty tax".

"The customer is the best possible regulator of this market. For those who are not in that situation we want to make sure they get a fair deal," said Mr Taylor to reporters in Sydney on Saturday.

The Australian and Consumer Commission Competition (ACCC) welcomed the reforms "which will significantly reduce electricity prices for over half a million users and will better help all other customers in general to compare proposals".

AER Chairman Paula Conboy said the decision was going to address ACCC's findings "that these prices are unacceptable enough and the comparison of market proposals is too confusing".

Changes are similar to recent-introduced reforms from the Victorian government, which will move households on fixed proposals to a new default price.

About 14 per cent of customers are in NSW and southeast Queensland and about ten per cent in the AM on fixed proposals, according to the Australian Energy Market Commission.

Energy and labor spokeswoman Mark Butler accused the government of "holding up" on a policy recommended by ACCC in July last year and supported by the opposition in August.

"The vast majority of Australians, who are on a market" "offer, will not see any benefit of this announcement," he said.

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