Families and small businesses in Hume will benefit from big savings under the Federal Government’s new energy plan. Federal Member for Hume and Minister for Energy Angus Taylor said the savings on a household bill could amount to hundreds of dollars.

“We are asking energy companies to drop their prices from 1 January,” Mr Taylor said.

“I have written this week to the Australian Energy Regulator to ask for a default price to be set. Separately I am meeting with energy companies to ask them to independently lower their prices ahead of the Energy Regulator’s setting of the default price.

“This means that when your contract with your energy company comes to an end, or you want to negotiate a better deal sooner with your energy company, the default price will be your guide.”

Mr Taylor said median standing offers in NSW can be up to $411 per year more expensive than the cheapest market offer for households and up to $2,582 per year more for small businesses.

He said the Government had outlined a package of new measures to drive down power prices:

Stop the price gouging by big energy companies by banning sneaky late payment penalties, requiring them to pass on savings in wholesale prices to customers and strengthening the regulator’s power to crack down on dodgy, anti-competitive practices.

Create a price safety net (default price) to protect customers and remove the ‘loyalty tax’ on those who have stayed with their energy company or don’t have time to shop around.

Back investment in reliable generation which, over the longer term, will improve competition, lower prices and guarantee reliable supply. The Government will support projects that reduce wholesale electricity prices, support the reliability of the grid and increase competition.

Support reliable power by requiring energy companies to sign contracts guaranteeing enough energy to meet demand.

“I know people are struggling with rising power prices. Negotiating with energy companies can be time-consuming and confusing.

“Our plan will take the pressure off families and small businesses, and put customers back in charge,” Mr Taylor said.