Overview

• The government has launched a consultation to redesign the Default Market Offer mechanism and bring pricing in New South Wales, Queensland and South Australia closer to Victoria’s lower increases.
• Proposed changes include eliminating the competition allowance and capping customer acquisition and retention costs that retailers currently pass on to consumers.
• Some New South Wales households face electricity bill rises of between 8.3% and 9.7% from July under the Australian Energy Regulator’s finalised price caps.
• A $2.3 billion subsidy program for household solar batteries will slash typical battery costs by about $4,000 or 30%, potentially saving families up to $2,300 a year.
• The overhaul comes as the government balances pressure over rising bills with its ambition to source 82% of Australia’s electricity from renewable energy sources.