Better Regulate Power Prices

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Labor's Plan to Better Regulate Power Prices

A Shorten Labor Government will help households and businesses get a better deal on their power prices – overhauling electricity offers available to consumers and scrapping outdated deals so Australians pay less for their power.

Electricity prices have skyrocketed under the Liberals, increasing by 15 per cent since the Liberals were elected.

Currently, electricity retailers offer a range of products in different markets – including “standing” and “market” offers. Over time, energy retailers have abused standing offers, treating them as a high-price benchmark and implementing confusing discounting schemes that make it hard for consumers to find the best deal.

Labor will introduce a new regulated capped offer to the market – protecting families and small business from price gouging – and will force energy retailers to introduce simple, honest and transparent pricing so consumers can find the best deal.

LABOR’S PLAN:

Labor will work with the states to:

· Abolish outdated standing offers (which are not the same between retailers), and replace them with a new ‘default’ offer consistent across all retailers.

· Require retailers to reference any discounts to the new ‘default’ offer pricing, making it easier for consumers to genuinely compare offers and save money by finding the best deal for them.

The default price will be set independently in each jurisdiction, and the Australian Energy Regulator will be tasked with working with the states, the ACCC, agencies, industry and unions to deliver these reforms which will apply in non-price regulated National Electricity Market (NEM) jurisdictions – Victoria, New South Wales, South Australia and South East Queensland.

Labor’s plan will directly benefit 1.2 million households – with household customers currently on the standing offers estimated to save up to $165 off their annual electricity bill – with the average small business customer on a standing offer to save up to $1,500 per year, according to the ACCC.