Retail electricity prices have dropped in Queensland, NSW and South Australia following the Turnbull Government’s intervention in the gas market last year, Minister for the Environment and Energy, Josh Frydenberg, has announced.
The reduction in pricing is thought to have stemmed from the Federal Government’s intervention in the gas market to ensure more gas for domestic use before it is shipped offshore.
With gas fired power plants playing an increasing role in setting electricity prices, Mr Frydenberg said securing this additional gas has seen the wholesale price of electricity decline around 25 per cent in the first six months of this year compared to the same period in 2017.
The National Energy Guarantee, in conjunction with existing policies, has been forecast to reduce household electricity bills by $400 according to the independent Energy Security Board.
Mr Frydenberg said more consumers are also getting a better deal since the Australian Government’s meeting with the energy retailers in August last year.
As a result of the meeting and the retailers commitment to write to 1.6 million households to tell them of better deals:
- Around 270,000 fewer customers are on market offers with expired discounts
- Around 230,000 fewer customers are on standing offers
Recent analysis by the Australian Energy Market Commission has found that customers moving off standing offers could save up to $832 in South Australia, $574 in Victoria, $504 in South East Queensland, $365 in New South Wales and $273 in the Australian Capital Territory.