Save on your electricity bill

How you can take advantage of falling electricity prices.

Queensland’s electricity prices have fallen by almost 9% since June 2020, according to new data from the Australian Competition and Consumer Commission (ACCC).

The data showed Australian households could collectively save $900 millions annually buy switching to lower offers or through retailers lowering the price of their existing plans, an annual saving of $126 per household in Queensland.

ACCC Chair Rod Sims said energy retailers were required by new energy market laws to pass the savings on to customers. 

“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,” Mr Sims said.

“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.”

The new Prohibiting Energy Market Misconduct (PEMM) laws that came into effect in June 2020 require electricity retailers to make reasonable adjustments to their prices in line with their costs of procuring electricity. 

Companies that fail to comply with the laws face serious penalties.

“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,” Mr Sims said.  

“We also expect further significant price reductions from retailers over time, as the reductions in wholesale spot prices flow through to retailers’ contracting positions.”

Mr Sims said customers should review their electricity expenses to ensure they’re receiving the best deal.

“We also urge people who haven’t seen their bill come down to contact their electricity retailer and ask to be put on the best offer for their circumstances,” he said.

“Many consumers will be able to achieve further savings by comparing advertised prices and shopping around.”

The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice and does not take into account any person’s particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs. The information referenced from the ACCC is © Commonwealth of Australia.