Australian Energy Regulator Cuts Default Power Prices Up to 10 Percent

The Australian Energy Regulator has reduced the default market offer ceiling prices that apply in New South Wales, south-east Queensland and South Australia. The changes take effect from 1 July and will lower the maximum amount retailers can charge customers on standing offers.

1 percent in South Australia. 4 percent increase. Small-business prices will drop more sharply, reaching reductions of 20.

Victoria operates under a separate regime administered by the Essential Services Commission. Benchmark prices there will decline 5 percent from mid-year. Western Australia, the Northern Territory, Tasmania and regional Queensland remain outside the national default-offer framework.

M. m. m. in South Australia. AER Chair Clare Savage said the reductions reflect lower wholesale contract prices, reduced spot-price volatility and increased output from wind and battery generation during evening peaks. "This is a positive outcome with prices coming down for the majority of households and all small businesses across the three regions where the DMO safety net applies," Ms Savage said.

She added that households should compare offers because most customers are on market contracts rather than the default offer. "Despite uncertainty created by conflict in the Middle East, wholesale energy costs have not increased," Ms Savage said.