Almost 300000 Victorian households will see their power prices slashed by up to 28 per cent next year, according to Victorian Premier Daniel Andrews.
Mr Andrews joined Energy Minister Lily D’Ambrosio on Sunday to announce a new set of rebates for households on costly default electricity deals.
He said the rebates would be funded by Victoria’s major energy retailers — Origin, AGL and EnergyAustralia — and would drive down electricity costs for more than 285000 customers on default deals (also known as standing offers) or on expired market offers.
The bipartisan independent Retail Review by Terry Mulder, John Thwaites and Patricia Faulkner found that customers on standing offers were paying significantly higher prices than average or what was reasonable for an essential service.
In separate discussions with the government, each of the big three retailers acknowledged that standing offer arrangements were costly for those customers.
Mr Andrews said the rebates proposed by the big three retailers would save non-concession holders on standing offers and those on some expired market offers between $250 and $440, compared to what they would have paid next year if the rebate was not in place.
‘‘This makes things fairer for the one in 10 Victorians who are on costly default energy deals and are paying too much for their power,’’ he said.
‘‘It will make a real difference for families across Victoria — saving them money and making their lives easier.’’
Mr Andrews said concession holders on standing offers were set to save between $254 and $720 from the rebate.
●For more information, visit: energy.vic.gov.au/about-energy/policy-and-strategy