Government’s energy cost caps to save families hundreds

Up to 470,000 families in NSW will save an average $218 on their power bills from July in a price safety net released today as part of the Morrison government’s bid to drive down power prices.

Up to 470,000 families in NSW will save an average $218 on their power bills from July in a price safety net released today as part of the Morrison government’s bid to drive down power prices.

Some families could save close to $700 a year under the new price cap proposals.

The Australian Energy Regulator has released the new caps, or a price safety net, for electricity standing offers as part of Morrison government power reforms.

The draft prices show customers on a flat rate tariff could save an average of $174.

Some families could save close to $700 a year under the new price cap proposals.

This increases to up to $218 for customers on a controlled load — high-energy use appliances metered separately — tariff and up to $937 for small business customers on a flat rate tariff.

Customers currently on standing offers would directly benefit from the proposed savings. Others who are on negotiated market offers will be able to use the new price safety net to check if their retailers is charging them too much or ripping them off.

Of the 23 retailers in the NSW Endeavour energy network, just one retailer currently has a standing offer below the new default market offer of $1720.

Some customers are currently paying a standing offer at Click Energy for $2377, meaning those customers could save up to $657 on their bills under the changes.

Of all the 22 retailers in the NSW Essential energy network, just two have current standing offers below the new default market offer for the network, which is $1924.

Energy Minister Angus Taylor. Picture Gary Ramage

Customers with Commander Power and Gas are paying a standing offer of $2620, meaning they could be in line for a massive $696 saving. And the Ausgrid network currently has a standing offer below the new default market offer.

Energy Minister Angus Taylor said the government did not take the decision to introduce a ­default market offer lightly.

“Australians can no longer afford to wait for the big ­energy companies to put their customers ahead of their ­record profits,” Mr Taylor said.

“We owe it to Australian households and businesses to take action. This decision from the Morrison Government will provide much needed price ­relief to small businesses and families facing excessive standing offer rates.”

A consultation period is open on the proposed prices until March 20.

Originally published as Government’s energy cost caps to save families hundreds