Reducing power costs for Victorians
Almost three hundred thousand Victorian households will see their power prices reduced by up to 28 per cent in 2018.
Victoria's Premier Daniel Andrews joined Minister for Energy Lily D’Ambrosio today to announce a new set of rebates for households on costly default electricity deals.
The rebates will be funded by Victoria’s major energy retailers – Origin, AGL and EnergyAustralia – and will drive down electricity costs for more than 285,000 customers on default deals (also known as standing offers) or on expired market offers.
The bipartisan independent Retail Review by Terry Mulder, John Thwaites and Patricia Faulkner found that customers on standing offers were paying significantly higher prices than average or what was reasonable for an essential service.
In separate discussions with the Government, each of the big three retailers acknowledged that standing offer arrangements were costly for those customers. With power bills set to increase on 1 January 2018 across the country, the Government has stepped in to make power bills fairer.
The rebates proposed by the big three retailers will save non-concession holders on standing offers and those on some expired market offers between $250 – $440 compared to what they would have paid next year if the rebate was not in place.
The savings for concession holders on standing offers are even more significant, with the rebate set to save them between $254 – $720 on what their power bills would have been without it.
To put this in perspective, the average electricity price increase for standing offers on 1 July 2017 in Queensland was 6 per cent, in New South Wales was 18 per cent, and in South Australia was a whopping 19 per cent.
In Victoria, by virtue of the rebates, most standing offer customers will see a decrease of 5 to 28 per cent.
The big three retailers have 92 per cent of standing offer customers. The Government has encouraged all energy providers to follow the lead of Origin, AGL and EnergyAustralia in slashing the cost of energy for their customers.
The Retail Review also proposed a range of recommendations to improve the efficiency, transparency and oversight of Victoria’s retail gas and electricity sector, and ensure it is working in the best interest of Victorians.
For more information and a copy of the review, see www.energy.vic.gov.au/about-energy/policy-and-strategy.
26 November 2017.