Electricity bills are expected to fall in the second half of 2021 and beyond, thanks to continued action by the Morrison Government to reduce energy prices for families and businesses.
Introduced by the Morrison Government in July 2019, the Default Market Offer protects customers from excessively high standing offer contracts and also acts as a reference price, making it easier for customers to shop around and compare offers from different retailers.
The Australian Energy Regulator (AER) has today released its draft determination for the Default Market Offer for 2021-22, signalling further substantial price reductions for households and businesses across New South Wales, south-east Queensland and South Australia.
Under the AER's draft determination, residential customers on standing offers in New South Wales could save as much as $136 a year on their electricity bills compared to 2020-21. Those in south-east Queensland could be better off by $69 a year, while households in South Australia stand to save as much as $117 a year.
Small businesses in New South Wales could end up slashing their energy costs by $577 a year compared to 2020-21, while those in south-east Queensland and South Australia will save more than $300.
Low wholesale prices are driving the savings for both residential and small business customers, with prices across the National Electricity Market at their lowest levels in years.
Minister for Energy and Emissions Reduction Angus Taylor said these price falls are a result of action taken by the Morrison Government to deliver affordable, reliable energy for Australian households and small businesses.
"Thanks to the Morrison Government's energy policy, hundreds of thousands of Australian families and small businesses are paying less on their electricity bills," Minister Taylor said.
"These are significant reductions to the cost-of-living pressures faced by hard-working Australians, with Government policy ensuring that consumers pay less for their electricity and have more money in their hip pockets."
"This year's price drops are on top of the previous cuts to standing offer prices that were achieved when the Default Market Offer first came into force in 2019.
"Residential customers could be paying up to $802 less in New South, $794 less in south-east Queensland and $707 less in South Australia compared to before the introduction of the DMO.
"For Small businesses the savings are substantial. Small business owners could be saving up to $3,354 a year in NSW, $2,955 in south-east Queensland and $2,878 in South Australia, compared to what they were paying in 2019.
"There are even greater savings available for households and businesses who shop around, so I would encourage everyone to check the competitiveness of their deal using the Government's free price comparator website energymadeeasy.gov.au."
ABS statistics show household electricity bills doubled under Labor, whereas under this Government, Australian households have now experienced eight consecutive quarters of year-on-year electricity price falls.
Public submissions for the Default Market Offer draft determination close 18 March 2021. The AER is expected to release the final determination in late April 2021.
