Savings for customers on default electricity contracts

Projected savings for small businesses range between $457 and $2050 a year.

The standing offer pricing reforms, which were based on recommendations in the Australian Competition and Consumer Commission's Retail Electricity Pricing Inquiry report, reduce and cap the excessive prices of electricity plans for customers not on competitive market offers.

These customers end up on standing offers, which effectively represent the maximum price.

Nearly a million households and business customers on standing offers in NSW, South Australia, south-east Queensland and Victoria have already seen automatic savings to their electricity bills.

Average savings on standing offers since the electricity pricing reforms came into effect on July 1 amount to between $130 and $430 a year for households, according to the ACCC's August 2019 electricity market report.

But the report also shows most consumers can achieve further savings by comparing advertised prices and shopping around, particularly with smaller electricity retailers.

About 800,000 household customers and 160,000 small businesses on standing offers were placed on the new, cheaper standing offers from July 1.

ACCC chair Rod Sims said prices of many standing offers had already fallen significantly, providing immediate and automatic savings for some households and small businesses.

"We are pleased about the positive changes in the electricity market so far, including a recent announcement of free energy advice tools for small businesses, but urge that other key recommendations be implemented if costs are to come down further," Mr Sims said.

"There are many offers available in the market that are cheaper than the standing offers."

Energy retailer Origin Energy confirmed it not only reduced electricity prices to customers on standing offers but extended the reduction to a range of customers on time-of-use and non-discounted plans.

Origin Energy expects the introduction of the default market offer will deliver savings to about 230,000 residential customers and about 55,000 small business customers in NSW, Queensland and South Australia.

Victoria introduced a separate mechanism known as the Victorian default offer.

Origin Energy in early July wrote to all impacted customers to notify them of the changes.

Meanwhile, it is easier for customers to compare electricity prices under advertising reforms, which also came into effect from July 1.

Advertised prices must be compared to a common benchmark known as the reference price.

"The new advertising requirements also replace previous advertisements with confusing "discounts" which could not really be compared with one another," Mr Sims said.

What else is making news, sport?

Port Macquarie launches its own homegrown airline

League nines to be played on a new night for upcoming season

While you're with us, you can now receive updates straight to your inbox from the Port Macquarie News. To make sure you're up to date with all the news, SIGN UP HERE.