Energy consumers are sharing in almost a billion dollars in electricity savings thanks to the Morrison Government’s strong action to reduce electricity prices.
The Australian Competition and Consumer Commission’s (ACCC) fifth report of its ongoing inquiry into the National Electricity Market confirms that wholesale electricity costs have continued to fall, resulting in significant savings for households and small businesses.
The ACCC estimates that $900 million in potential savings are already available to households in eastern and southern states through cheaper electricity plans.
In more good news for consumers, the ACCC expects retail prices to continue to fall.
Treasurer Josh Frydenberg said the Government will continue to ensure the energy market is delivering the best outcomes for Australians.
“Electricity prices are continuing to fall, which is good news for Australian families and businesses, and another positive in our recovery from the COVID-19 pandemic,” the Treasurer said.
"For this report, the ACCC has been able to leverage their information gathering powers to monitor activity in Australia’s electricity markets to ensure Australia’s consumers and businesses continue to benefit from competition.”
Minister for Energy and Emissions Reduction Angus Taylor said this report shows the Government’s Default Market Offer (DMO) continues to deliver strong results for electricity consumers, with customers on standing offers paying less for their electricity.
“We introduced the Default Market Offer to protect loyal customers from high prices and ensure Australians can access affordable power,” Minister Taylor said.
“The median price for standing offer customers across New South Wales, South Australia and south east Queensland is 10 per cent lower for households and 6 per cent lower for businesses than it was before the introduction of the Default Market Offer.”
“The reforms delivered by the Government across the electricity market are working to put downward pressure on prices to ensure access to affordable electricity and put more money back in Australians’ pockets.”
The Morrison Government remains committed to ensuring families, businesses and industry have access to the affordable, reliable power they need.
The ACCC’s fifth report into the NEM is available on the ACCC website.