Hundreds of thousands of Australian families and small businesses will pay less for their energy bills from 1 July, 2021.
The Morrison Government's Default Market Offer price cap for 2021-22 locks in cheaper electricity prices across south-east Queensland, South Australia, and New South Wales.
Residential standing offer customers in South Australia will save an additional $116 a year, while those in south-east Queensland will save an additional $53 a year and customers in New South Wales will be better off by as much as $102 a year.
Small business customers will save an additional $272 in South Australia, $243 in south-east Queensland, and up to $441 in New South Wales.
Average residential customers who were on the highest standing offers prior to the introduction of the DMO, will see their electricity bills fall by up to $780 per year.
Bills for average small business customers on the highest standing offers before the introduction of the DMO will fall by up to $3,105.
Minister for Energy and Emissions Reduction Angus Taylor said the Default Market Offer is continuing to deliver for Australians, driving down the price of energy and putting more money in people's pockets.
"This price update confirms energy costs are continuing to fall and that is good news for hundreds of thousands of hard-working Australian families and small businesses," Minister Taylor said.
"As we bounce back from the COVID-19 pandemic, low energy prices will help drive our economic recovery by boosting the spending ability of households and businesses."
The Morrison Government introduced the Default Market Offer in July 2019 to protect customers from excessively high standing offer contracts in New South Wales, South Australia and south-east Queensland. It also acts as a reference price to make it easier for customers to compare offers from different retailers.
