Millions of Australians are set to saveon their power bills under new default prices for electricity.
In its draft legislation the annual prices for residential customers would fall by between 1.3 and 10.1 per cent, depending on where a person lives, while small business prices would decrease by between 7.6 and 21.2 per cent.
NSW households could have energy bills decrease up to 8.2 per cent, or $226 per year, while South East Queensland residents are set to save 10.1 per cent or $216 a year from July 1.
Those living in South Australia will have their residential power prices drop 1.3 per cent or around $31 a year.
The figures were released in the draft determination of the Default Market Offer, set by the Australian Energy Regulator (AER) on Thursday.
The offer, which will be finalised in late May, is the maximum price cap for bill increases for households and small businesses who are on the default plan.
AER chair Clare Savage said while the price of electricity prices has come down, households should shop around.
“The Default Market Offer may not be the cheapest electricity plan available, but it provides a fair and reasonable option for someone who hasn’t or doesn’t want to engage in the market,” she said.
“With prices coming down, it is also important to check that any competitive offer you may be on currently remains the best one for you. Staying on an old offer past 1 July could mean you are paying more than necessary.”
The announcement from the AER follows the release of draft figures the Essential Services Commission proposed a 3 per cent reduction on the Victorian Default Offer (VDO), which is the maximum households will pay for electricity.
Under this proposal, households will save about $46 a year.
Small businesses are set to save 5 per cent or $172 a year.