Power prices Qld: Australia Energy Regulator drafts lower rates

Consumers who’ve never bothered to compare electricity prices will be rewarded with annual discounts up to $662.

CONSUMERS in southeast Queensland could save up to $662 a year on their power bills under the final default market offer drawn up by the Australia Energy Regulator.

Most consumers who are on standing offers, meaning they have not negotiated better deals, will save about $118 a year according to the independent regulator.

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Those on the highest standing offer with Energex stand to save $662.

Small businesses in southeast Queensland stand to save about $457 a year.

The average savings are higher in NSW and South Australia because customers there are being ripped off by more.

The figures are one of the remaining parts of the Federal Government’s strategy to reduce power prices after shelving plans to legislate a “big stick” to break up energy companies that price gouge.

Prime Minister Scott Morrison has described higher standing offers as a “loyalty tax” on long-standing customers who do not negotiate discounts with their power companies.

The lower default price will take effect from July 1, placing an effective cap on standing offers.

“For too long, the energy companies have been taking advantage of loyal Australian families and small businesses who have been paying the highest electricity prices on the market,” Energy Minister Angus Taylor said in a statement.

AER chairwoman Paula Conboy said standing offers were no longer working as they were intended, causing financial harm to disengaged consumers.

Originally published as Power prices Qld: Australia Energy Regulator drafts lower rates