Millions of Aussies set for power bill relief
Millions of Aussies are set for some financial relief, with electricity costs set to drop by up to 7 per cent in the coming months.
The Australian Energy Regulator (AER) and Victoria's Essential Services Commission (ESC) both released their draft default market offers - the maximum energy retailers are allowed to charge customers - for the 2024-25 financial year.
Under the AER draft, residents in Sydney, Newcastle and the Hunter on the default offer will pay between 3 and 3.4 per cent less for electricity starting from July 1.
The biggest drop is set for Victoria, with the ESC proposing a 6.4 per cent decrease.
Those in Western Sydney, the Illawarra, and South Coast, will see their electricity bills decrease by 1.9 to 7.1 per cent.
South Australians will receive a drop between 0.5 and 2.5 per cent.
A number of small business customers will also benefit from lower power bill costs with 9.7 per cent for Sydney, Newcastle and the Hunter; 4.4 per cent for Western Sydney and the South Coast; 0.3 per cent for South-East Queensland; 8.2 per cent for South Australia; and 7 per cent for Victoria.
Energy Minister Chris Bowen welcomed the news of lower power bill costs, but acknowledged that it will continue to play a part in the cost of living challenges faced by many Australians.
"This is encouraging news," he said.
"Encouraging for those small businesses and families who will receive lower energy bills as a result.
"But nobody should suggest that there aren't real cost of living pressures around the world and in Australia, and energy prices are of course part of that and will continue to be."
Not everyone will see a drop, with customers in the rest of regional NSW to get a small increase of 0.9 per cent, while the default offer for South East Queensland will increase by up to 2.7 per cent.
While not all households are on the default offer, Bowen said that the AER's decision will also affect those not on the offer.
"This either impacts directly or indirectly your energy bill," he said.
"Directly for those on the default market offer. For those who aren't on the direct market offer, indirectly - the energy companies have to benchmark themselves against this, tell their consumers how they compare to this, and it provides very real pressure on them to match it.
"If they don't, consumers will know about it and will make choices accordingly.
"It's partly about those on the default market offer, but it actually impacts on all our bills indirectly."
AER chair Clare Savage said that the cost of living crisis was the main contributor for their draft decision.
"We know that economic conditions have put pressure on many Australians and the increases in electricity prices over the last two years has made energy less affordable for many households," she said.
"In light of this, the AER has, in this decision, placed increased weight on protecting consumers."
The draft decision is not final, with both the AER and ESC to receive consultation and feedback from stakeholders before confirming their default market offers in May.
Image: Getty