Electricity bill discounts for up to 168,000 South Australians in State Government bulk-buy deal with Origin Energy
LOW income earners could be up to $531 a year better off under the State Government’s bulk-buy power deal with Origin Energy.
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LOW income earners could be up to $531 a year better off under the State Government’s bulk-buy power deal with Origin Energy.
The Government expects 168,000 of South Australians who receive concession payments will be able to opt in to receive discounted energy after Origin won the tender process.
CQ Partners modelling shows it will save those who are on standing contracts, the most expensive retail offers, between $231 and $531 annually.
Premier Jay Weatherill said many of the 168,000 were still on standing contracts – where consumers were automatically placed after the sale of the Electricity Trust of SA.
Those currently on market offers will receive a significantly lower discount of $133.
The discount applies even if customers do not pay their bill on time and does not feature exit or paper bill fees.
The deal is not compulsory, but Mr Weatherill said it would be easy to opt-in, simply requiring a signature on a letter to be mailed out to everyone on concession payments.
Mr Weatherill said the deal provided “real cost of living relief to those who need it most”.
“For the 168,000 South Australian households on lower incomes, a saving of up to $531 is a significant boost to their budget,” he said.
“It’s a saving that will make their lives that little bit easier.”
Communities and Social Inclusion Minister Zoe Bettison said the Government had struck a “much better deal” for the state’s most vulnerable.
“This offer strengthens the Government’s support for fixed and low-income South Australians and I urge people to consider switching to the new offer so they can pay less on their energy costs,” she said.
In its modelling, CQ Partners found some consumers might be able to find better savings in the open market, but they were contingent on having solar panels, smart meters or capping energy usage.
The modelling showed just over 22,000 South Australians currently on market offers would need to sign up to the deal to meet the $3 million implementation cost.
The discount comes as new figures show high electricity prices have been acting as a drag on the economy as Australians avoid non-essential spending.
Federal Treasurer Scott Morrison said power prices had contributed to soft household consumption results in the September quarter.
But he said Government policies, including better energy retailer deals, would put downward pressure on household power bills.