Households in QLD, NSW to benefit as EnergyAustralia drops rates

EnergyAustralia today said average electricity prices across its household customers in Queensland would fall by more than $80 for 2018, and by around $470 a year for its small business customers. Meanwhile, New South Wales customers on the company’s new fixed-rate plan Secure Saver would save around $65 a year.

Average electricity prices for 2018 are flat in South Australia and the Australian Capital Territory. Average gas prices in all states are unchanged.

In Queensland, the changes equate to reductions in average annual prices of 3.8 per cent for EnergyAustralia residential customers and 7.2 per cent for small businesses.

In New South Wales, the average household electricity bill will be effectively flat (declining slightly, by 0.2 per cent). However, households in the state on Secure Saver will get a 3 per cent reduction in their usage and supply charges, or approximately $65 off their annual electricity bill.

"The Hazelwood and Northern power stations shutting on short notice was a shock to the market," said EnergyAustralia Managing Director Catherine Tanna. "Ever since, families and small businesses have had a tough time keeping the lights on and their energy costs under control.

“This is the first tangible sign that the pressure on household power bills is easing. There’s more to do, but the ingredients are there for an affordable, stable and reliable energy system,” she said.

Ms Tanna said she was encouraged by progress toward the federal government’s National Energy Guarantee, which could provide long-term investment certainty and, ultimately, a more affordable, reliable energy system.

Since Secure Saver was launched in October 2017 around 80,000 customers in New South Wales have moved to the plan, a rate of more than 2300 each week. The plan guarantees no energy price rises – but passes on price falls – in return for a two-year commitment.

“It was 239 days ago we launched Secure Saver because our customers wanted certainty,” said Ms Tanna. “Secure Saver puts households back in control of their energy bills, but we also know it asks people to make a big commitment to us.

“We wanted to do something extra for customers who have put their trust in this plan and in EnergyAustralia,” she said. “The good news is Secure Saver remains open for households in New South Wales and Queensland to join.”                                                  

Ms Tanna said investments by companies including EnergyAustralia in support of new generation should help stabilise wholesale electricity prices. EnergyAustralia recently announced it had completed a program to financially underpin development of 500 MW of renewable projects on the country’s east coast.

Now, the company is assessing investments to help integrate solar and wind power into the national grid, including 1000 MW of potential new gas-fired power plants in New South Wales and a 225-MW pumped hydro project in South Australia.

Earlier this year EnergyAustralia became the first major energy retailer to remove fees for paper bills and over-the-counter transactions for all its customers in New South Wales, Victoria, South Australia and Queensland.

Last year the company announced an additional $10 million investment in measures to support financially vulnerable customers.

The revised rates are effective from 2 July 2018[1].

Estimated savings are based on like-for-like consumption.

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Movements in Average EnergyAustralia Prices for 2018