Energy bills for households and small businesses are expected to decrease across the eastern states by 10 percent from July 1.

The Australian Energy Regulator announced that it will cut default market offers (DMO) after years of conflict driving high energy prices.

The DMO applies to households and small businesses in South Australia, New South Wales and Southeast Queensland. It safeguards people who cannot or choose not to sign up for a more competitive market retail energy plan.

This means that the maximum rates retailers can charge customers on standard electricity plans will be reduced and is intended to match the customer’s consumption habits.

Fewer than one in 10 households and less than 15 percent of businesses are on a DMO.

Energy and Climate Change Minister Chris Bowen said that renewable energy and batteries have relieved pressure from coal and gas use, which enabled this decision.

“We’ve got the best sun and wind in the world, and we’re using our sovereign renewables to shield our grid from global energy volatility and to bring down your energy bills,” he said.

In New South Wales, the residential flat rate standing offer price will fall between 3.4 percent and 5 percent. In Southeast Queensland, it will fall by 7.2 percent and 1.1 percent in South Australia. Some customers in South Australia will see an increase of 1.4 percent.

In Victoria, the Essential Services Commission sets the state’s default offer, which will fall by 5 percent for households and 6 percent for small businesses.

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