Is a Regulated Power Price the Answer
According to a report by the Australian Council of Social Services (ACOSS) and the Brotherhood of St Laurence, a regulated retail power price could save households $261 a year in electricity bills.
The con to a regulated power price is that those who are proactive about their energy and seek out discounted offers could find them harder to secure.
While the government proposed default power price could reduce the energy bills for those on standing non-discounted offers by between 30% to 40%, the energy director of the Grattan Institute, Tony Wood, says, those who have sought the best deals on the market could lose their discounts.
The Australian Energy Market Commision (AEMC) chairman, John Pierce, also adds that a regulated price would see retailers increase their prices to recoup losses and reduce discounts if a price cap were put into place.
Average savings per household of a fair, national regulated retail price in jurisdictions without an existing regulated retail price.
|
State/Territory |
NSW |
VIC |
SEQLD |
SA |
ACT |
|
$378.00 |
$436.00 |
$305.50 |
$411.80 |
$261.60 |
The AEMC has already rejected the government’s proposed plan saying a cap creates more risk for energy consumers. The implementation of a price cap could make energy more affordable for the 3 million people living in poverty or in low income household, it could also make it become less affordable for those who are sitting just at the above those lines and on energy discounts.
While energy prices have increased and made certain groups vulnerable, is there a happy medium to help those who need a price cap without affecting those who already have energy discounts that make their energy affordable?
What are your thoughts on an energy price cap? Tell us below.
