The 'Default Market Offer' is a new regulated electricity plan that will be replacing the existing standing offers around the country, beginning from the first of July this year.
This new default offer is set to help lower the costs of electricity, as many Australian households are paying the exorbitant rates of the existing standing offers.
In fact, there are over 750 thousand households around the country who are still on standing offers and are therefore paying way more for energy than they need to.1
While the move has been criticised by experts for its potential to reduce competition in terms of better-valued electricity plans, the default market offer will be welcomed by households who are currently paying the top-dollar standing offers.
From the first of July, New South Wales, South-Eastern Queensland and South Australia will be getting the electricity Default Market Offer, as set out by the Australian Energy Regulator (AER).
Victoria will get their own 'Default Energy Offer', though their prices will be set by the Essential Services Commission.
These new energy prices are designed to protect Australians who are not interested in comparing energy rates and remaining active in the marketplace. The need for this protection arose when the existing standing offers were causing financial distress for being too expensive.
The exact savings that you could be had depends on which distribution zone your household resides in for residents in New South Wales and Victoria.
Otherwise, residents in South-East Queensland and South Australia are looking at a flat reduction between the existing standing offers and the new Default Market Offer.
Victorian households stand to benefit the most with their 'Victoria Default Offer', with savings between $310 and $450 per year. New South Wales residents can save between $129 and $181 a year also. The exact savings that your household can have is dependant on which distribution zone you fall in.
This is because the distribution zones contain unique costs that are associated with providing and maintaining the energy services in their respective areas.
South Australian households are to save $171 a year with the new Default Market Offer, while South-East Queensland will see residents on a standing offer save $118 a year with the new default offer.
When it comes to maximising the most savings on your energy plan, AER says that "asking for a better deal can deliver real savings"2.
While these Default Market Offers will help aid those households who currently paying an exorbitant amount on the existing standing offers, you could still save even more money.
The various market rates offered by energy providers could still provide you with ample savings, and these market offers will almost always still be cheaper than the Default Market Offer.
The best way to save money on your existing energy plan is to compare the rates to other market plans and ensure that you are getting the best value plan for your household.
Our energy comparison tools can help you quickly compare the different rates and discounts in the energy market, so that you can be confident in the energy deal that you choose.
We compare the market rates of our various electricity & gas providers to find the right deals for you.
We have helped Australians save money on their electricity & gas plans for many years.
By refining our energy comparison tools, we can ensure that you will be able to adequately compare energy rates and discounts across our energy providers.
You can even compare each of the rates to your latest energy bill to see how much you could be saving by switching to a more competitively-priced deal.
Plus, our comparison services are completely free to you.
We have more energy guides for you to check out. Visit Energy Guides Australia to learn more about how you can save money on your electricity & gas, while also learning some new tips and hints on energy concessions, tariffs and more!
Or you can visit Broadband Guides Australia if you wish to consult our guides on broadband connections or what to know about switching to the NBN.
Visit our Energy Frequently-Asked-Questions to also learn more about energy and break down the jargon in the industry.