Released 07/06/2023 - Joint media release
The Independent Competition and Regulatory Commission (ICRC) has announced its final decision on regulated electricity prices in the ACT.
The decision will result in a maximum average price increase of 4.15 percent – a figure lower than inflation - from 1 July 2023 for customers on the standing offer, also known as the default market offer. This increase, if fully passed through, would amount to less than $1.50 per week for the average household and less than $6 per week for the average business on their annual electricity bills for 2023-24.
Without the ACTs large scale Renewable Energy contracts, the average household on the regulated standing offer would have faced electricity bills around $225 higher.
Instead, the effect of our large scale Renewable Energy contracts, in combination with the Commonwealth National Energy Bill Relief, means around two thirds of households will only see a $75 annual increase and one third of households will see their electricity bill decrease by $100 (for the average household using the standing offer).
Across the border in New South Wales, the average household electricity costs are expected to be $747 a year higher than in the ACT.
Further to this – the current 31,000 eligible ACT households will receive additional concessions with further announcements to be made in the ACT Budget. The Government remains committed to providing affordable and reliable energy to its residents. Measures such as the Utilities Concession, Utilities Hardship Fund, Sustainable Household Scheme, Home Energy Support Program, Energy Bill Relief Fund, and Renters Home Energy Program will continue to be implemented to assist low-income and vulnerable households in managing their energy expenses.
For more information on ACT Government rebates, concessions and government assistance programs please visit https://www.act.gov.au/assistance.
Quotes attributable to Chief Minister and Minister for Climate Action Andrew Barr:
This stability in ACT electricity prices for the coming year is a direct result of the decisions made over a decade ago to implement a 100 percent renewable electricity target. These forward-thinking policies have shielded the ACT community from the extreme price volatility witnessed in other parts of the country.
The ACT increase contrasts strongly with other Australian states and is the only jurisdiction where regulated electricity tariffs will increase by 4.15 percent.
The average annual bill for Canberrans on standing offers will be the lowest compared to the default market offers faced by customers in New South Wales, Victoria, Queensland and South Australia, where residential customers are facing increases in the order of 20% to 27%.
The increase is also less than inflation, meaning a real reduction in electricity costs, which is good news for Canberrans facing cost of living pressures.
Quotes attributable to Minister for Water, Energy and Emissions Reduction Shane Rattenbury
The ACT is again an island of stability in an island of electricity price volatility. The positive outcome for ACT consumers is a testament to the ACT Government's commitment to creating a sustainable and affordable energy system.
By investing in renewable energy through initiatives like the large-scale feed-in tariff scheme, the ACT has been able to offer cheaper renewable electricity supply, passing on benefits to ACT consumers.
- Statement ends -
Andrew Barr, MLA | Shane Rattenbury, MLA | Media Releases