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Continuing to deliver lower electricity prices

1 July 2020

The Morrison Government is continuing to deliver lower energy prices for households and small businesses.

Loyal electricity customers across New South Wales, South Australia and south-east Queensland will continue to receive lower electricity deals as the Default Market Offer for 2020-21 comes into effect from 1 July.

Energy and Emissions Reduction Minister Angus Taylor said around 720,000 customers will be automatically better off and comes at an important time as Australia emerges from the impact of the COVID-19 pandemic.

“The Morrison Government continues to work to bring energy prices down to help household budgets and support small businesses employ more people and grow our economy,” Minister Taylor said.

“We introduced the Default Market Offer a year ago to protect loyal customers on standing offer contracts from paying excessively high prices, and hundreds of thousands of Australians have already benefited from this action.”

The Default Market Offer for 2020-21 will see continued price reductions for loyal electricity customers who were on standing offers prior to its introduction.

The Default Market Offer also acts as a reference price, making it easier for consumers to shop around and compare offers from different retailers.

“I urge all Australians to compare offers to ensure they are getting the best deal for their energy needs,” Minister Taylor said.

Residential customers on standing offers in South Australia and south-east Queensland could save between $590 and $725 a year compared to prices before July 2019, with customers in NSW better off by up to $500 and $666 depending on where they live.

The average small business customer in South Australia and south-east Queensland on standing offers could save between $2,536 and $2,638 compared to prices a year ago, while customers in New South Wales could save between $2,392 and $2,855, depending on their region. 

Larger energy using small businesses could save significantly more than the Default Market Offer average:

  •  A cafe in South Australia and south-east Queensland on a standing offer could save between $5,376 and $5,593 compared to prices before 1 July 2019, while customers in New South Wales could save between $5,071 and $6,053 depending on their region.
  •  A hairdresser in South Australia and south-east Queensland on a standing offer could save between $3,550 and $3,693 compared to prices before 1 July 2019, while customers in New South Wales could save between $3,349 and $3,997 depending on their region.
  •  A childcare centre in South Australia and south-east Queensland on a standing offer could save between $5,376 and $5,593 compared to prices before 1 July 2019, while customers in New South Wales could save between $5,071 and $6,053 depending on their region.
  • A bakery in South Australia and south-east Queensland on a standing offer could save between $3,804 and $3,957 compared to prices before 1 July 2019, while customers in New South Wales could save between $3,588 and $4,283 depending on their region.

Energy customers across the country are also benefiting from the Government’s Big Stick legislation, which started in June and will ensure big energy companies put the interests of customers first by passing on savings.

“The Government expects retailers to pass on the benefits to their customers, and it is encouraging to see some retailers are already offering cheaper deals,” Minister Taylor said.

“Since the Big Stick legislation was first introduced we have seen 10 consecutive months of wholesale price falls.”

All energy customers are encouraged to review the competitiveness of their current energy plans and find the best possible for their area using the Government’s free price comparator website energymadeeasy.gov.au.

Note: Specific sector indications of price reductions were calculated by the Department of Industry, Science, Energy and Resources and were based on annual usage (kWh) for an indicative business in each category. 

Media contact: Minister Taylor's office 02 6277 7120.