The Minister for Energy welcomes the Australian Energy Regulator’s draft Default Market Offer which shows lower electricity prices in real terms for all residential and small business customers.
The NSW Government has strongly advocated for the protection of consumers through smaller retail margins since coming to office, and we are pleased the Australian Energy Regulator has listened to and prioritised consumers.
This is great news, showing lower wholesale prices have started filtering into retail prices, with the Default Market Offer dropping by up to 7.1% for residential and 9.7% for small businesses.
Importantly, the Australian Energy Regulator has also reduced the retail profit margin by more than 30% to prioritise the protection of customers from unjustifiably high prices. This will help to protect against price gouging and ensure customers are on a fair deal.
The NSW Government’s number one priority is helping people across New South Wales with cost of living pressures. In 2023, the NSW Government allocated $1.3 billion to provide energy rebates and targeted energy bill relief to up to 1.6 million eligible households and around 300,000 eligible small businesses, in partnership with the Australian Government.
Households and small businesses can reduce their bills further by shopping around for the best deal for them. I encourage customers to use the free and independent Energy Made Easy service.
Key facts
- The Default Market Offer is the maximum amount energy retailers can charge customers on default contracts.
- It acts as a cap for electricity prices for the coming year.
- It applies to residential customers and small businesses in New South Wales, South Australia and south-east Queensland.
- When advertising pricing, energy retailers must show the price of their offer in comparison to the Default Market Offer price.
- This helps customers more simply compare the price of different offers.
- The Australian Energy Regulator’s role is to determine the Default Market Offer price each year.
- It will publish its final determination before the new offer begins in July.
