Member for Baulkham Hills David Elliott today praised the NSW Government’s announcement to free up retail electricity prices with the regulated power market coming to an end on 1 July 2014.
Mr Elliott said for the first time in 15 years customers with regulated electricity prices will see a reduction on their bill.
“Removing regulated electricity prices means the power companies need to earn your business and that means greater choice and better prices,” Mr Elliott said.
“The Independent Pricing and Regulatory Tribunal (IPART) and the Australian Energy Market Commission (AEMC) both published reports in 2013 noting the NSW electricity market is competitive and that regulation is unnecessary. The AEMC went onto to say regulation may be inhibiting price competition.
“The AEMC also highlighted recent discounts offered by electricity retailers would save a consumer $300 to $400 per year, off an average household bill of $2,500.
“On this information the NSW Government has taken action to remove electricity price regulation.
“The NSW Liberals & Nationals Government has put an end to more than $4.3 billion in unnecessary future infrastructure spending and operating costs by the network businesses, costs that will no longer be passed onto you.
“Labor’s legacy of soaring electricity prices of up to 22.4% per year is now well and truly dead.
“Now customers have more price relief with the increased competition expected to see better deals on offer.
“Around 60 per cent of NSW households and small businesses, or almost 2 million customers, have made the switch from a regulated electricity contract to a competitive market contract in recent years.
“Now the remaining 1.3 million customers can choose what is best for them and take control of their electricity bills.”
Mr Elliott said that on 1 July 2014 any customers who have not switched over to a competitive market contract will automatically be transferred to a ‘transitional tariff’.
“For most households on a transitional tariff their bill will be 1.5% lower in the first year than under the current regulated price. However many market offers may be even cheaper.”
“Importantly, the removal of retail electricity price regulation will not change access to energy rebates, protection laws or the quality of customers’ electricity supply.
“IPART will continue to play a role monitoring the NSW electricity market and analysing competition indicators, and will report back to the NSW Government for the next three years.
“I urge all households and small businesses to shop around for the best deal by making a free comparison on the Australian Energy Regulator’s website at www.energymadeeasy.gov.au,”Mr Elliott said.
For more information on the reforms visit www.energy.nsw.gov.au or call 13 77 88.