Around 720,000 loyal households and small businesses across Australia are set to receive lower energy bills from July 1, 2020.

The Australian Energy Regulator (AER) has released its final determination for the Default Market Offer for 2020-21, which locks in cheaper electricity prices for New South Wales.

The Federal Nationals in Government helped introduce the Default Market Offer in July 2019 to protect customers from excessively high standing offer contracts. It also acts as a reference price to make it easier for customers to compare offers from different retailers.

This price update is great news for families and small businesses, many of whom will be dealing with the impact of the COVID-19 coronavirus pandemic.

Hundreds of thousands of hard-working Australian families and small businesses have already benefited from lower electricity bills since the Default Market Offer price cap was introduced. This update will give welcome relief to loyal energy customers, particularly during the COVID-19 pandemic.

Prices for customers in New South Wales will decrease in most regions and will continue to remain well below prices from before July 2019, when the Default Market Offer was introduced.

The latest decision means residential customers on standing offers in NSW will be better off by up to $500 and $666 depending on where they live. Small businesses customers in New South Wales could save between $2392 and $2855, depending on where they are.

Loyal customers who find it confusing or hard to navigate energy pricing and discounts, can now be assured they will no longer be taken advantage of by their retailer.

In June, the Government’s Big Stick legislation will also come into force, which will further hold energy companies to account and ensure that substantial reductions in costs are passed through to consumers.

More information on comparative electricity prices is available on the Government’s free and impartial price comparator website energymadeeasy.gov.au.