Victorian households in line for $430 power savings

More than 120,000 Victorian households are on track to save between $310 and $430 a year on their power bills under government changes to pricing rules introduced in July.

More than 120,000 Victorian households are on track to save between $310 and $430 a year on their power bills under government changes to pricing rules introduced in July.

The Victorian government intervention, which came into effect at the start of the financial year, will also see thousands of small businesses save between $1380 and $2050 annually.

The savings are outlined in the second six-monthly report into power prices from the ACCC, to be released today.

The Victorian Default Offer, like the federal government’s Default Market Offer in Queensland and NSW which also began in July, abolished standing energy offers and required energy retailers to offer a fairer price.

Energy Minister Angus Taylor said the report showed the government intervention was having an impact on prices but there was still more to do, with plans to bring legislation to parliament.

“The government has long warned that energy companies must put their customers first, and the market practices the ACCC has described as ‘unacceptable and unsustainable’ must stop,” he said.

“That is why the government is committed to passing our ‘big stick’ legislation, which compliments the DMO and provides the ACCC with real teeth to hold power companies to account for their actions in the market.”

Victoria’s Energy Minister Lily D’Ambrosio said the ­report confirmed the reforms were working.

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“We’ve made it easier for Victorians to take control of their power bills — whether that’s through swapping costly standing offers for our fair ­Victorian Default Offer, or by making power bills and plans easier to understand,” she said. The ACCC also renewed calls in the report for green initiatives funded through electricity bills to be scrapped, saying there were “opportunities for all governments to provide additional savings to customers”.

The commission argued abolishing the scheme would have a “tangible impact” on ­reducing customer bills, saving the average residence $36 in 2020-21.

Originally published as Victorian households in line for $430 power savings