More than 700,000 loyal energy customers will benefit from lower energy prices, with the third iteration of the Morrison Government's Default Market Offer (DMO) taking effect today.
The DMO, which commenced on 1 July 2019, locks in cheaper electricity prices for customers across New South Wales, South Australia and south-east Queensland who are on standing offer contracts.
This is more good news for households and businesses, who are already sharing in almost a billion dollars in electricity savings thanks to the Government's strong action to reduce electricity prices.
Residential customers in south-east Queensland and South Australia will save between $53 and $116 a year, while customers in New South Wales will be better off by as much as $102 a year.
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.
Small business customers will save an additional $272 in South Australia, $243 in south-east Queensland, and up to $441 in New South Wales.
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 DMO continues to shield households and businesses from higher prices.
"Cheaper energy is always good news for Australian households and businesses," Minister Taylor said.
"Bills are a burden. Through the Default Market Offer, we're working to remove some of the constraints they place on Australians by boosting their spending ability.
"When households and businesses have more money in their pockets, they can spend it on the things they love and need, and get ahead. This is particularly important while the impact of the COVID-19 pandemic continues to be felt across the economy.
"Australians shouldn't be concerned about keeping the lights on. Our strong action to keep energy prices low means people can access the power they need, when they need it and at an affordable price.
The Government introduced the DMO 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.
The Government has a strong track record of delivering effective policies to ensure energy costs are not a burden on Australian households and businesses.
This has included the introduction of new, tougher penalties in the National Energy Laws, the 'Big Stick' legislation and a Statement of Expectations for energy companies to provide extended relief to Australian households and small business customers experiencing financial hardship through the COVID-19 pandemic.
The Australian Energy Regulator's compliance and enforcement priorities for 2021-22 also have a strong focus on putting Australian consumers first.
