Some great news to start the year for Australian low income earners! Following a lot of State government pressure on electricity companies charging too much to Australian consumers, prices will start to be eased for hundreds of thousands of Australian households. Savings officially started to kick in as of January 1st which will see energy retailers bring down their current offers for loyal customers. Electricity and gas companies that will comply with these new savings including  AGL, Origin and Energy Australia and others.

How Much Will You Save on Your Bill?

In NSW, some of the savings you will get include:

  • 10 per cent off the energy usage component of their bill for AGL’s customers who have been on a standing offer for more than a year.
  • 15 per cent off the usage component for Energy Australia’s concession standing offer customers.
  • 10 per cent off the usage component for Origin’s concession standing offer customers.
In Victoria, savings will include:
  • 10 per cent off the whole bill for AGL customers who have been on a standing offer for more than a year.
  • 15 per cent off the usage component for Energy Australia’s concession standing offer customers.
  • 17 per cent off the whole bill for Origin non-concession customers standing offer customers and 26 per cent off for concession customers.

What’s That in Dollar Terms Though?

Electricity companies have committed to savings worth hundreds of dollars for many longtime customers. These are customers who do not shop around often for the best deal and are therefore taken advantage of for their actual loyalty to the same electricity company. State governments rightly argued that these consumers should be rewarded for staying loyal instead of being punished.In New South Wales, where customers on standing offers will see reductions of 10-15 per cent on charges for energy usage, residential consumers may see a $200 overall reduction in their bills. A welcome bill cut for all Australian low income earners.

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