The cost reductions in the new draft regulated electricity prices for consumers in the National Electricity Market will bring some welcome bill relief if fully realised, according to the peak body for retailers, the Australian Energy Council.
The reduced Default Market Offer, a safety net price for customers who aren't on cheaper market deals, reflects lower generation (wholesale), environmental and retail costs.
The Australian Energy Council's Chief Executive, Louisa Kinnear, cautioned there remained some unknowns ahead of the final decision.
"Today's announcement is also a timely reminder to consumers that they could benefit from being on their retailer's market deals. The default offers are a safety net, not the best price in the market, which is why the vast bulk of customers are already on competitive deals.
"Rather than waiting for cheaper prices to flow through in July we encourage consumers to take the opportunity to save through a lower market offer today."
Ms Kinnear expressed concern at the continual change in the default price setting methodology. "We will take a close look at the latest approach to see if it properly reflects the costs of market and other risks that retailers manage on behalf of customers."
The latest draft decision includes the new Solar Sharer Offer, which retailers are required to have in place by 1 July.
"The new offers won't suit everyone, and consumers should consider if they can consistently shift their electricity usage from the evening to the middle of day to take proper advantage of these deals.
"The risk is that where people can't shift when they use electricity, they may actually face higher charges and bigger bills."
About the Australian Energy Council
The Australian Energy Council (AEC) is the peak body for energy retailers and generators operating in competitive markets.
Our members generate and sell energy to over 10 million homes and businesses and are committed to delivering a reliable, affordable and decarbonised energy system for consumers.
The AEC supports net zero by 2050 and recognises the electricity sector's role in reducing Australia's emissions. Our members are major investors in renewables, firming and storage technologies that are critical to ensuring customers continue to receive reliable and sustainable energy supply as we navigate the energy transition.
