Households could quickly and easily avoid copping needlessly expensive electricity bills, which roll over each year onto more expensive deals, under a plan to be announced by Energy Minister Chris Bowen that could save consumers hundreds of dollars annually.
Bowen’s one-click switch plan, funded under a $48 million reform package in last week’s federal budget, aims to work with market regulators and state governments to create a system for customers to punch in their details and switch to the cheapest deal at the push of a button.“We know households are doing it tough, and we don’t want them to be paying one cent more than they need to for their energy bills,” Bowen said.
The ACCC’s report on retail electricity found that four out of five households were paying equal to or more than the median price point when it looked at 5 million standard flat-rate retail contracts across the east coast. Power bills are set to fall. They rose sharply over the past two years due to spikes in wholesale power prices – what retailers pay for power before they sell it to their customers – caused by a spate of problems across Australia’s ageing coal-fired power stations and coal mines last year, while the war in Ukraine drove up the cost of additional coal and gas needed to plug shortfalls.
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