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EnergyAustralia’s residential electricity customers on a regulated tariff will receive lower electricity rates as part of the NSW Government’s decision to deregulate retail electricity prices.
The State Government today announced it would remove regulation of electricity prices from 1 July this year.
Under the changes, residential customers on a regulated rate will be transferred to a transitional tariff, which is 1.5 per cent lower than their current rate.
EnergyAustralia’s Group Executive Manager, Strategy and Corporate Affairs, Clare Savage said deregulation would stimulate competition in the market.
“Deregulation is great news for customers as it will deliver more competitive deals and innovative products,” Ms Savage said.
“Following extensive negotiations with the NSW Government, EnergyAustralia has agreed to deliver a transitional tariff that will provide significant savings for our regulated customers and will lead to a more innovative and dynamic market in the long-term.
“Deregulation is the key to our future energy system but we will need to work hard to ensure we exceed our customers’ expectations every day if we are to succeed in this environment.
“The Government has negotiated a good deal for customers.
“Our transitional tariff will mean electricity customers on a regulated rate will see their electricity price fall. This fall demonstrates an immediate benefit from deregulation as under the transitional tariff customers currently on a regulated rate will pay less for electricity than if the market had remained regulated.”
The transitional tariff will be available for two years with prices falling by 1.5 per cent in the first year and increasing by no more than CPI in the second year.
Ms Savage said excessive regulation of the retail market discouraged competition and reduced the willingness for businesses to explore innovative products and technologies for their customers.
“We will work hard and compete strongly to keep our customers in what will be an exciting but challenging market for retailers,” she said.
“A more competitive market leads to retailers offering more innovative products and services to cater for the changing and specific needs of energy consumers.
“Deregulation supports the changing dynamic in the industry as consumers become more engaged through new technologies and greater control of their own energy use.
“Recently the Federal Government’s Smart Grid, Smart City program, in which we were the retail partner, was trialling a range of new products and technologies in parts of NSW to support consumers to take control of their energy use and costs.
“As the market deregulates, we are more likely to see these types of products and technologies rolled out to all customers in NSW.”