Electricity bills to be slashed under Australian government’s fresh energy bid
“SNEAKY” late payments for power bills will be banned and a default electricity price set under Scott Morrison’s four-point plan to bring down costs in the next six months.
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“SNEAKY” late payments for power bills will be banned and a default electricity price set under Scott Morrison’s four-point plan to bring power prices down by up to $832 in the next year.
The Prime Minister has also vowed to follow through with Malcolm Turnbull’s promise to take a “big stick” to the big energy companies by threatening to give the government the power to divest them of their assets.
Energy companies will also be forced to pass on any cuts in wholesale prices to customers under the plan unveiled at Parliament House today.
Mr Morrison said the plan to launch a default power price would end the “loyalty tax” on consumers who wound up paying more because they didn’t change their electricity provider.
The Australian Energy Regulator has been directed to start work “immediately” to require power retailers to set their prices against a default market price.
A benchmark price will be set by July 1 next year.
The government is also planning to adopt an Australian Competition and Cosumer Commission recommendation to underwrite new power generation, also announced before Mr Turnbull was rolled.
Mr Morrison did not rule out underwriting new coal-fired power generation, but said the funds could go to any type of generation, including renewables.
Energy Minister Angus Taylor will also call all the energy companies in Australia to attend a round table meeting, where he will be “asking each company to individually take action to lower prices, specifically their standing offers, by January 1.”
“This is a downpayment for all Australians on a fairer electricity market,” he said.
“Our package for affordable, reliable power will ensure a better deal for all Australians, a better deal for small businesses and ensuring that big energy companies do the right thing by their customers.”
It comes after it was revealed prices would be slashed by up to $832 under the new plan.
The government will introduce a reference bill for each region under which electricity retailers will be required to calculate and advertise their discounts using a common reference point.
This will help customers to clearly compare offers to find the best deal.
A report by the Australian Energy Market Commission found customers on standing offers could be paying up to $832 per year more than the cheapest market offer in South Australia.
The figures for other states were: Victoria ($652), NSW ($411), Queensland ($369) and ACT ($273). Tasmania already has a regulated standing offer.
For small businesses the price differences range from $969 to $3457. Mr Taylor will meet with his state and territory counterparts in Sydney on Friday to discuss co-operation and law changes.
Originally published as Electricity bills to be slashed under Australian government’s fresh energy bid