Australian households could be saving over $150 a year on electricity

Households across Australia could be saving around $126 a year on their electricity bills.

Australian households could be saving over $150 a year on electricity

Households across Australia could be saving around $126 a year on their electricity bills.

With electricity prices down almost nine per cent since the middle of last year, the Australian Competition and Consumer Commission (ACCC) said people in most states could be paying less.

All states except Tasmania, Western Australia and the Northern Territory have seen the cost of electricity drop by an average of $126, with the total savings projected to be $900 million.

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Many Australians have seen a spike in electricity bills while working from home.

But that saving is not always being passed on to customers.

And while they can switch for a better deal, the ACCC is warning electricity retailers the onus is on them to comply with new energy market laws, and pass on reductions to householders.

"There are two ways that households and small businesses can get the hip-pocket benefit of recent reductions in retailers' costs: by changing to a new, cheaper plan; or by waiting for their retailer to lower the rates on the plan that they're already on," ACCC Chair Rod Sims said.

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"While we encourage consumers to cash in on the available savings by switching to a better deal, new laws require electricity retailers to pass on cuts in the wholesale cost of electricity.

"A significant increase in generation capacity, attributed to renewable generation and falling fuel costs, has led to much lower wholesale electricity costs and it's vital that all Australians now see the savings.

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The ACCC has already approached some electricity retailers who it says may not have adequately passed on cost savings to customers, and warned it will be "closely monitoring the behaviour of many others" .

Compared to 2019, average wholesale electricity prices have dropped by 58 per cent in Victoria, 49 per cent in South Australia, 43 per cent in New South Wales and 39 per cent in Queensland.

Source : 9 News More