Under Malcolm Turnbull a deep energy crisis has emerged which has seen power prices skyrocket for Australian households and businesses.
That’s why 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get a better deal on their power prices – overhauling electricity offers available to consumers and scrapping outdated deals so Australians pay less for their power.
Labor’s plan means households can save up to $165 per year from their energy bill, and the average small business customer can save up to $1500 per year.
Labor will introduce a new regulated capped offer to the market - protecting families and SMEs from price gouging – and will force energy retailers to introduce simple, honest and transparent pricing so consumers can find the best deal.
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.
That’s why Labor will work with the states to implement recommendation 30 of the ACCC Retail Electricity Price inquiry, and:
· Abolish outdated standing offers (which are not the same between retailers), and replace them with a new ‘default’ offer consistent across all retailers.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.
1.2 million households will directly benefit from the plan – with household customers currently on the standing offers estimated to save up to $165 off their annual electricity bill, and the average small business customer on a standing offer to save up to $1500 per year, according to the ACCC.
Importantly, all consumers will benefit from increased transparency, simpler bills and downward pressure on prices
These reforms build on Labor’s existing plans for cheaper bills and cleaner energy. We’re committed to 50 per cent renewable energy by 2030, designating Renewable Energy Zones across the country, and making the electricity market work for households and business.
Only Labor can be trusted to give consumers a fair go when it comes to energy prices.