Australians set for a huge $109 cut to their electricity bill - unless you live in Sydney
- South Australians are set to enjoy $109 savings on their electricity bills from July
- Brisbane and Gold Coast consumers will get smaller, annual $62 power saving
- Sydney residents can expect to reap savings of $5 to $9 depending on provider
- Here’s how to help people impacted by Covid-19
Australian household power bills are set to fall by up to $109 a year following a government order on living costs.
The Australian Energy Regulator (AER) has imposed a ceiling on what electricity retailers can charge existing customers based on the amount of power they use during the next financial year.
Its determination was announced hours before the competition regulator gave energy companies permission to jointly hatch plans to help customers struggling to pay their bills because of coronavirus.
Australian household power bills are set to fall by up to $109 a year following a government order on living costs. The Australian Energy Regulator (AER) has imposed a ceiling on what electricity retailers can charge existing customers based on the amount of power they use during the next financial year
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The AER-mandated savings will apply to consumers without a controlled load arrangement where high-energy appliances like hot water systems are metered separately.
From July 1, South Australians can look forward to a $109 a year, or a 5.6 per cent reduction in their power bills as customers of SA Power Networks.
Energex customers in Brisbane and the Gold Coast can expect to see a 3.9 per cent or $62 reduction.
Sydney customers will Endeavour won't be so lucky, with their bills falling by just $9 a year or 0.5 per cent.
Ausgrid users in Sydney, Gosford and Newcastle can expect even less relief - just $5 or 0.3 per cent.
From July 1, South Australians can look forward to a $109 a year, or a 5.6 per cent reduction in their power bills as customers of SA Power Networks. Pictured is the Adelaide Convention Centre
Regional New South Wales consumers will in fact pay $3 more a year or an extra 0.2 per cent.
Small business customers are set to do better under the AER's default market offer for 2020-21.
South Australians who employ people can expect a $815 a year saving, equating to an 8.9 per cent power bill reduction.
South-east Queenslanders with Energex are getting a $265 or 4.4 per cent saving.
Every year, the AER sets a default market offer an electricity retailer can charge a customer for their annual usage, but it's not a maximum bill.
The final determination was made after consulting with energy providers but the AER said COVID-19 had not affected the decision.
'Based on the available information, we have decided not to make any form of adjustment to this final determination in response to COVID-19,' the final report said.
Sydney customers will Endeavour won't be so lucky, with their bills falling by just $9 a year or 0.5 per cent. Ausgrid users in Sydney, Gosford and Newcastle can expected even less relief - just $5 or 0.3 per cent. Pictured is Manly on Sydney's northern beaches
'This is primarily due to the current uncertainty about the impacts of COVID-19 and the paucity of information to make an adjustment at this time.'
The announcement was made hours before the Australian Competition and Consumer Commission declared wholesale and retail energy companies would be allowed to co-operate in providing financial relief to customers affected by COVID-19.
The interim order allows electricity and gas companies to hold discussions, share information and enter arrangements to help residential and business customers.
'We know the COVID-19 pandemic is having a significant economic impact on consumers and businesses in Australia, which is why we have granted this interim authorisation,' the ACCC's chairman Rod Sims said.
