EnergyAustralia has today announced it will its join peers Origin Energy and AGL in a price reduction for customers, which means 2.8 million households and businesses over the coming weeks will see a reduction in their electricity prices.
Customers in New South Wales, South Australia, Queensland and the Australian Capital Territory will benefit from the changes, with savings varying by state.
EnergyAustralia’s decision could see households in South Australia save around $67 a year on their electricity bills, while NSW residents could be better off by around $20.
Small-to-medium-sized business customers of EnergyAustralia will see falls in average annual electricity costs, ranging from $150 in South Australia to $50 in Queensland.
New South Wales households with EnergyAustralia will on average save $41 on their annual gas bills while businesses will save $369.
These savings come on the back of AGL and Origin Energy announcing electricity price reductions of 1.2 per cent to 5.6 per cent for residential customers in New South Wales, South-east Queensland and South Australia.
EnergyAustralia chief customer officer Mark Collette said, “We are glad to see energy prices have fallen for many of our customers, with some prices flat. Reductions in wholesale energy costs are being passed on to customers, but falls have been offset by an increase in the regulated amount poles and wires networks charge us for transporting electricity around Australia.
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“These are very tough times for Australian families and businesses which is why we’ve been expanding our hardship program to get the most support we can to those who need it the most.
“We can help with payment plans and bill extensions. We can put people in touch with trained financial advisors to talk about their individual situation. And we can connect people with government support programs that they may not have known about.”
Mr Collette said since the beginning of March, EnergyAustralia has set up more than 125,000 payment plans and 76,000 payment extensions and have referred hundreds of residential customers to government grants. And, for small businesses, EnergyAustralia has set up Rapid Business Assist.
“Our advisors help with tailored payment schedules and advice for lowering consumption. For businesses in hibernation, we can help with free disconnections and reconnections to save them money. Our advisors can also discuss the available government energy relief subsidies,” Mr Collette said.
“Anyone can find themselves in financial hardship. Any customer who is struggling to pay their energy bill should get in touch immediately. Please – don’t let the issue build up.”
The Government has also acted to lower bills with the new Default Market Offer (DMO) price cap coming into effect from July 1.
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Households on standing offers across New South Wales, South-East Queensland and South Australia could be between $500 to $725 a year better off than they were before the introduction of the DMO, depending on where they live. Average small businesses on standing offers could now be saving up to $2392 to $2855 a year, while larger energy using small businesses could be saving significantly more than average.
Minister for Energy and Emissions Reduction Angus Taylor said the price reductions come at an important time.
“These announcements are a win for Australian families, individuals and small businesses doing it tough right now in the face of COVID-19,” Minister Taylor said.
“COVID-19 is changing the way we live and for many, it is driving up energy use in their homes. Energy bill relief will be welcomed by many Australians.
“With wholesale prices continuing to fall for 10 straight months, energy retailers have an obligation to pass on those cuts to their customers and our Big Stick legislation ensures the energy companies can be held to account.
“The ACCC has also found that second tier retailers are offering some of the cheapest plans in the market. This shows how important it is to shop around.”