Homes and businesses will start to feel some relief from soaring electricity bills within weeks as authorities move to cut prices for hundreds of thousands of customers on the eastern seaboard by as much as 9 per cent for the first time in two years.
Households in NSW will receive a reduction of about 1 per cent, or about $28, compared with last year, while prices for businesses in the state will fall by up to 8 per cent, or $402. Clare Savage, chair of the Australian Energy Regulator, said the regulator understood that cost of living pressures were “front of mind” for many homes and businesses.Australian energy suppliers on Thursday expressed disappointment that the regulator had changed the methodology by trimming the headroom in default market offer calculations that were meant to ensure sufficient competition among retailers.
Wholesale electricity prices, which typically account for one-third of retail electricity bills, rose sharply in 2022 due to a spate of breakdowns at ageing coal-fired power stations, which forced utilities to buy additional coal and gas to fill shortfalls just as prices were trading at record highs as a result of the war in Ukraine.
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