Deregulation to deliver savings to Origin customers on regulated electricity contracts

Origin Energy will reduce electricity prices for its residential customers on regulated tariffs in New South Wales from July 1, 2014.

Once the New South Wales government’s decision to deregulate electricity prices takes effect from July, Origin will reduce its fixed and variable electricity charges by 1.5 per cent for residential customers in the Essential Energy and Endeavour Energy network areas on regulated contracts.

For small businesses on regulated tariffs, Origin will cap electricity price increases at 1.8 per cent for one year from July 1. delivering cost certainty for those customers.

Origin chief executive officer energy markets Frank Calabria said the move was good news for customers on regulated prices.

“Deregulation of energy prices stimulates innovation in new products and services and allows the industry to more effectively compete on prices that reflect the costs and risks of energy retailing,” he said.

The prices will also be made available from July 1, to NSW customers currently on market contracts who switch to a regulated contract and to new customers who sign up to a regulated contract.

Origin is not reducing its electricity prices applicable to residential customer standing contracts in the Ausgrid network area where Origin is not the incumbent electricity provider, or market contracts. Similarly, for small business customers on those types of contracts, electricity price increases won’t be capped.

The electricity prices will reduce further if the carbon price is repealed.