General News
30 March, 2024
Regional NSW to miss out on proposed power bill relief
In a blow to bush living, regional NSW residents and small businesses are set to miss out on the recently announced power bill relief.
In a blow to bush living, regional NSW residents and small businesses are set to miss out on the recently announced power bill relief.
The Australian Energy Regulator (AER) last week released its draft benchmark for electricity prices, known as the ‘Default Market Offer’ (DMO), which revealed much of regional NSW could see an increase to their power bills while Sydney could see prices drop by up to almost 10 per cent.
Gilgandra residents could see their bills increase by almost one percent per year and small businesses 0.7 percent, while Sydney residents could see their prices drop by three percent and small business in Sydney could be down by 9.7 per cent.
The proposed prices set out by the AER are subject to public consultation and stakeholder feedback, along with updated network and wholesale costs, with final prices set to be released in May.
Chair of the AER, Clare Savage said that a range of costs are factored into this draft determination including wholesale and network costs, environmental and retail costs.
“We know that economic conditions have put pressure on many Australians and the increases in electricity prices over the last two years has made energy less affordable for many households. In light of this, the AER has, in this decision, placed increased weight on protecting consumers. While wholesale markets have stabilised since their extreme peaks of 2022, this easing has been offset by the pressures we are observing in network prices. Poles and wires costs are a large component of retail prices, comprising around 40 per cent of the price,” Ms Savage said.
Regulations require the AER to set a reasonable per-customer annual price, taking into account the costs of supply while also enabling retailers to make a reasonable profit.
Guided by the government, the AER must balance the protection of customers while allowing retailers to make a “sufficient margin’.
This year, in the face of cost-of-living pressures, ministers requested the AER to prioritise the protection of customers from unjustifiably high prices.
Ms Savage said she welcomed recent data showing retailers were dropping prices, with average discounts of between one and five percent available across most areas. Some of the most competition areas are offering discounted rates of up to 23 per cent.
She said retailers are required to tell on you on the front page of your bill at least every 100 days if they can offer you a better deal, and encouraged people to shop around to ensure they are getting the best deal and check for concessions and rebates. Bill relief is also currently offered by the Commonwealth and NSW government.
“If you’re struggling to pay your bills, contact your retailer as soon as possible because under national energy laws they must assist you,” Ms Savage concluded.
