Australian Energy Regulator announces power bill change in several Australia states

As the cost of living continues to be a pressing concern for many Australians, forms of financial relief are always welcome—may it be discounts, deals, or price cuts.

A recent announcement from the Australian Energy Regulator (AER) is a breath of fresh air—especially for those in Australia’s southeast states.


Starting from July 1, households across Australia's southeastern states can expect a significant reduction in their power bills, thanks to a cut in electricity price caps and the introduction of government energy rebates.

The AER's final default market offer (DMO)—a price ceiling to protect consumers from overpaying—has been revised, which resulted in lowered maximum charges that electricity retailers can impose on households.


compressed-electricity.jpeg
The Australian Energy Regulator announced a significant price cut for several states in southeastern Australia. Image Credit: Pexels/Pok Rie


In New South Wales, the cap will be reduced by up to $28, bringing the maximum amount down to $2499. Meanwhile in South Australia, the reduction is even more substantial at $63, with a new cap of $2216.

These figures don't factor in yet the household electricity rebate announced in the federal budget—meaning bills will be further reduced by an additional $300.

This is a significant saving that will undoubtedly help ease the financial burden for many.


Despite an increase in the default offer by up to $83 to $2052 for the next financial year, southeastern Queensland residents will not feel the pinch thanks to the federal government's rebate—coupled with a generous $1000 subsidy from the Labor state government.

Meanwhile, Victorians will enjoy a price fall of up to 5.7 per cent—$100 to $1655 before the $300 rebate is applied.

It's important to note that while only between eight and 12 per cent of households are signed up to the default market offer—almost 500,000 customers in total—the impact of the DMO extends beyond these figures.


Estimated average household energy bill under 2024-25 DMO (1).jpg
The AER revealed possible price cuts under the 2024-2025 DMO. Sources: Australian Energy Regulator, Victorian Essential Services Commission


Major retailers like Origin Energy and AGL use the state-specific caps as a benchmark for setting prices for the rest of their customers.

These benchmarks can start a ripple effect that will be felt across the market.

The rationale behind the reduction in the DMO is attributed to an easing in wholesale prices—the cost at which retailers purchase electricity before selling it to consumers.


However, this has been balanced with a rise in network costs, covering the maintenance of poles and wires infrastructure.

Despite this, the AER managed to keep customer prices from increasing by reducing the allowable margins for power companies.

While the moderation in default prices is a welcome development, Ben Barnes, Acting Chief Executive of the Australian Energy Council, cautioned that it could reduce competition in the sector and potentially limit retailers’s ability to offer discounts.

The future setting of the DMO will be crucial for maintaining industry confidence and enabling retailers to provide cheaper market offers.

With these changes in mind, AER Chair Clare Savage encouraged consumers to actively seek out better electricity deals.

'Most retailers have cheaper deals than the standing offer, so shopping around remains the best way to get the best price,' she advised.


Energy Minister Chris Bowen welcomed the AER's final offer and highlighted the government's investments in energy as instrumental in lowering household bills.

'Today's figures show a welcome downward trend for prices, but we know there's more to do—which is why we're delivering our reliable renewables plan and providing direct energy relief for every household energy bill,' he stated.

As we navigate the challenges of rising household expenses, these reductions offer a much-needed reprieve.

It's a reminder of the importance of staying informed about changes in the energy market and taking advantage of rebates and subsidies when they become available.

After all, a penny saved is a penny earned, and in this case, the savings could be substantial.
Key Takeaways

  • The Australian Energy Regulator announced lower price caps to reduce power bills in Australia's southeastern states starting July 1.
  • Households in NSW, South Australia, and Victoria will see their electricity bills decrease due to these lower price caps and government rebates.
  • The default market offer will also affect more households as it serves as a benchmark for major retailers to set prices for their customers.
  • Despite cost reductions in the default market offer, the energy industry warned that it could reduce competition and limit retailers' ability to offer discounts.
Have you experienced a reduction in your power bills recently, or do you have tips for fellow seniors on how to manage energy costs? Share your thoughts and advice in the comments below.
 
Sponsored
ALL THESE SO CALLED REBATES MEAN NOTHING FOR PENSIONERS AS THE RICH GET THE SAME REBATES AS WELL AS THE TAX CUTS PENSIONERS DO NOT GET
LAST YEAR THE REBATE FOR PENSIONERS GOT A $500 rebate and A %1,8 increase in pensions
the rebates and cuts do not even cover what pensioners got last year which equals a minus result meanwhile the rich and workers get the same rebates plus a $1500 plus pay rise as a tax refund and what do pensioners get SWEET FU ;; All
IF THERE ARE 2 MARRIED PEOPLE WHO WORK THAT MEANS AN EXTRA $3,000to $3,800 PLUS ANY PAY RISES THEY MIGHT HAVE GOT DURING THE YEAR in their pocket compared to nothing EXTRA FOR THE PEOPLE WHO PAYED TAXES ALL THERE LIVES
ITS ABOUT TIME A GOVT STARTED CARING ABOUT PEOPLE OTHER THAN THEMSELVES AND THE RICH
 
The worst budget for aged pensioners!!! Usually we get something in there to help out with the outrageous cost of living, but we are actually worse off with this budget at a time when we aged pensioners are all struggling. Thank you Labor. I thought you were supposed to help the poor but you have rewarded the ones able to earn money. We are aligned with the CPI so only get 1.8% increase when we all know our cost of living has gone up by so much more! We just get poorer and poorer ...
 
Thanks Mr Bowen, Albanese etc. It doesn't matter to me what discounts & rebates you introduce - investment in YOUR green energy future has stuffed me for the next 5 years. After getting sucked in to putting $11,500 worth of solar panels (4.0kw) on my roof, where it was indicated I'd receive $2500 worth of rebates (already applied), my quarterly cost of electricity supply has gone from avg. $450 per qtr to $750 per qtr.
 
  • Like
Reactions: wattorjw and kbwise
I see that the Rebate for Queensland is lower than the other States. Not really a surprise though with our State Government and Council.
 
Sounds great but!!! Electricity prices are going up but will be offset for the next bill. After that, the significant increases will kick in. We are lucky, aren't we!!!
 
The worst budget for aged pensioners!!! Usually we get something in there to help out with the outrageous cost of living, but we are actually worse off with this budget at a time when we aged pensioners are all struggling. Thank you Labor. I thought you were supposed to help the poor but you have rewarded the ones able to earn money. We are aligned with the CPI so only get 1.8% increase when we all know our cost of living has gone up by so much more! We just get poorer and poorer ...
ACTUALLY THE CPI ACCORDING TO THE GOVT WAS %3.5 AND YET WE ONLY GOT HALF OF WHAT WE WERE DUE AS USUAL
SAME AS THE STIMULUS PACKAGES WHEN THEY WERE HANDED OUT
THE GOVT LET THE VIRUS INTO THE COUNTRY AND PENSIONERS GOT HALF OF WHAT EVERYONE ELSE GOT
 
  • Like
Reactions: wattorjw
Hey Mr Reg'lator; how about us hicks in Tasmania; we only provide the mainland with power through the Bass Strait cable, which means that the dams paid for back in the 1960s by public money are being used to to benefit the mainland's private-enterprise energy-profiteers.
 
ACTUALLY THE CPI ACCORDING TO THE GOVT WAS %3.5 AND YET WE ONLY GOT HALF OF WHAT WE WERE DUE AS USUAL
SAME AS THE STIMULUS PACKAGES WHEN THEY WERE HANDED OUT
THE GOVT LET THE VIRUS INTO THE COUNTRY AND PENSIONERS GOT HALF OF WHAT EVERYONE ELSE GOT
What incompetent gov't let the virus into the country? Ah, Morrison's LNP.
 
Sorry everyone and I know this will not be very popular but I feel that I have to say it. I as a pensioner am very grateful for what I get from the State and Federal Governments. There seems to be so many who are excessively critical of anything that their statutory bodies supply for them and even when they try to improve there is always the band of cynics who have to complain no matter what. My advice to them is go get a job and then see how bad your life is.
Australians are so lucky with their government support by comparison to other countries worldwide but just do not appreciate it. Sorry to be a critic and I will wait for the barrage of comments.
 
ALL THESE SO CALLED REBATES MEAN NOTHING FOR PENSIONERS AS THE RICH GET THE SAME REBATES AS WELL AS THE TAX CUTS PENSIONERS DO NOT GET
LAST YEAR THE REBATE FOR PENSIONERS GOT A $500 rebate and A %1,8 increase in pensions
the rebates and cuts do not even cover what pensioners got last year which equals a minus result meanwhile the rich and workers get the same rebates plus a $1500 plus pay rise as a tax refund and what do pensioners get SWEET FU ;; All
IF THERE ARE 2 MARRIED PEOPLE WHO WORK THAT MEANS AN EXTRA $3,000to $3,800 PLUS ANY PAY RISES THEY MIGHT HAVE GOT DURING THE YEAR in their pocket compared to nothing EXTRA FOR THE PEOPLE WHO PAYED TAXES ALL THERE LIVES
ITS ABOUT TIME A GOVT STARTED CARING ABOUT PEOPLE OTHER THAN THEMSELVES AND THE RICH
they cannot make a cut off due to income. tell me, where would it be?
 
Sorry everyone and I know this will not be very popular but I feel that I have to say it. I as a pensioner am very grateful for what I get from the State and Federal Governments. There seems to be so many who are excessively critical of anything that their statutory bodies supply for them and even when they try to improve there is always the band of cynics who have to complain no matter what. My advice to them is go get a job and then see how bad your life is.
Australians are so lucky with their government support by comparison to other countries worldwide but just do not appreciate it. Sorry to be a critic and I will wait for the barrage of comments.
100% agree with you.
 
  • Like
Reactions: Greg350
pretty dumb remark. do you think covid reacted to who was in government? what a joke.
I simply made a comment based on history. C-19 came into Australia during the LNP's tenure under Australia's least competent PM.
 
  • Haha
Reactions: Greg350

Join the conversation

News, deals, games, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.

Seniors Discount Club

The SDC searches for the best deals, discounts, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.
  1. New members
  2. Jokes & fun
  3. Photography
  4. Nostalgia / Yesterday's Australia
  5. Food and Lifestyle
  6. Money Saving Hacks
  7. Offtopic / Everything else

Latest Articles

  • We believe that retirement should be a time to relax and enjoy life, not worry about money. That's why we're here to help our members make the most of their retirement years. If you're over 60 and looking for ways to save money, connect with others, and have a laugh, we’d love to have you aboard.
  • Advertise with us

User Menu

Enjoyed Reading our Story?

  • Share this forum to your loved ones.
Change Weather Postcode×
Change Petrol Postcode×