Labor's Plan to Cut Power Bills

Labor's Plan to Cut Power Bills Main Image

20 August 2018

A Shorten Labor Government will help households and businesses get a better deal on their power prices – overhauling electricity offers available to consumers and scrapping outdated deals so Australians pay less for their power.

Labor will introduce a new regulated capped offer to the market - protecting families and SMEs from price gouging – and will force energy retailers to introduce simple, honest and transparent pricing so consumers can find the best deal.

Labor’s plan means households can save up to $165 per year from their energy bill, and the average small business customer can save up to $1500 per year.

“Under Malcolm Turnbull’s leadership, a deep energy crisis has seen power prices skyrocket for households and the viability of tens of thousands of jobs placed in jeopardy,” said Dr Mike Freelander MP.

“Unfortunately, the Coalition Government has proven they are too divided to tackle the power price crisis. Instead of acting, Malcolm Turnbull has politely asked the big energy companies to do the right thing – and he wants to give them a huge tax handout at the same time,” said the Member for Macarthur.

“For half a decade now, the Government has done very little to fix this crisis of their own making. They’ve presided over little more than an energy policy vacuum, while waging a war on renewables.”“I am determined to see increased transparency in the market, simpler bills for consumers, and of course a downward pressure on prices.”

Labor’s plan is to work with with the states to implement recommendation 30 of the ACCC Retail Electricity Price inquiry, and:

  • Abolish outdated standing offers (which are not the same between retailers), and replace them with a new ‘default’ offer consistent across all retailers.
  •  Require retailers to reference any discounts to the new ‘default’ offer pricing, making it easier for consumers to genuinely compare offers and save money by finding the best deal for them.
  • 1.2 million households will directly benefit from the plan – with household customers currently on the standing offers estimated to save up to $165 off their annual electricity bill, and the average small business customer on a standing offer to save up to $1500 per year, according to the ACCC.

“We need to make the electricity market work for households and business. With a capped power price deal and simpler pricing, we can ensure that consumers are given a fair go when it comes to energy prices,” said Dr Freelander.