Households could see an electricity price cut of up to 7.1 percent after the Australia Energy Regulator (AER) released their draft default market offer for 2024-25.

The proposed draft offers small businesses and residential consumers in South Australia, New South Wales, and southeast Queensland a guide to electricity prices.

Small business customers could see a decrease between 0.3 percent and 9.7 percent in electricity cost, while residential consumers can expect cuts between 0.4 percent and 7.1 percent.

The Essential Services Commission also released a draft Victorian Default Offer 2024-25, outlining proposed reductions for Victorian users. The draft proposes an annual decrease of 6.4 percent for residential consumers and seven percent for small businesses.

The predicted reductions come after electricity bill increases of up to 40 percent over the last two years.

Australian Energy Regulator Chair Clare Savage said the changes are subject to consultation as they are still in the draft stage.

“We know that economic conditions have put pressure on many Australians and the increases in electricity prices over the past two years have made energy less affordable for many households,” she said.

Households in Victoria could see their annual electricity bill decrease by $112 and small businesses by $266. Victorian energy minister Lily D’Ambrosio said she was delighted by the price cuts expected for her state.

“The benefits will flow on by putting downward pressure and greater competition on energy retailers to sharpen their pencils and further cut bills,” she said.

The AER’s final default market offer will be released in May.

Photo: Transmission tower under grey sky by Pok Rie is available HERE and is used under a Creative Commons Licence. This image has not been modified