A joint report by the Australian Council of Social Services (ACOSS) and the Brotherhood of St Laurence shows a default power price could cut electricity bills in New South Wales and Victoria by around a third.
In addition, the report claims a default power price would deliver the biggest savings to low-income households. These households will experience the most financial hardship in the transition to a low carbon energy economy.
Regulated electricity price helps low-income households
The report found a default power price could save between $261 and $436 each year for 37-60 per cent of Australian households.
It would also reduce energy spending as a percentage of income for the nation’s lowest-income households. This would then fall from 7.6 per cent to 6.1 per cent.
The report, ‘Affordable, clean energy for people on low incomes’, comes as power bills soar Australia-wide.
According to the Australian Energy Market Commission, Victorian households are facing average annual power bills of $1,096 for the 2018/19 financial year. This increased to $1,294 in NSW and $1,375 in Queensland.
The report says a default power price would reduce energy prices, which would then help people manage their bills.
Produced by the librarians at the Brotherhood of St Laurence in Melbourne, Australia