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AGL electricity customers will now receive an automatic discount on bills for standing offer customers.

The initiative ensures all electricity customers who remain on a standing offer for a year automatically get a better deal, bringing them more in line with the majority of AGL customers who are already on discounted market offers.

The new safety net means more than 150,000 household electricity customers across Australia will receive an average annual saving of between $50-$180 off the standing offer, assuming average annual usage of 4.4MWh on a peak only tariff.

The safety net will also protect small business electricity customers, with 27,000 to receive an average annual saving of between $120-$340 off the standing offer, assuming average annual usage of 8.8MWh on a peak only tariff.

Importantly, the safety net will occur automatically, without requiring customers to take action.

AGL Interim CEO, Brett Redman, said the move will protect families and businesses across Australia and help address concerns on energy affordability.

“We understand the importance of energy affordability and the need to ensure customers are rewarded for their loyalty,” Mr Redman said.

“The safety net will protect AGL electricity customers and give automatic discounts to thousands of customers without them having to pick up the phone.

“At any time, customers can get in touch to seek a better deal and we encourage them to do so. The safety net is in place for customers who do not get in touch.”

The new measure follows efforts by AGL to proactively write to standing offer customers, urging them to seek a better deal. AGL will continue its commitment to provide standing offer customers with an annual plan review.

This is the next stage in AGL’s loyalty initiatives. AGL first began providing automatic discounts to standing offer customers in 2016. The measures announced today will take effect on 1 January 2019.

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