AGL has announced it will lower electricity prices across New South Wales, Queensland and South Australia from July 1.
Queensland consumers will experience the largest reduction of 1.6 per cent, while South Australian prices will fall by 0.4 per cent, and NSW by 0.3 per cent.
AGL chief customer officer Melissa Reynolds said many customers have already seen their bills come down, with more than two million accounts switching to a new deal since July last year.
“We understand power prices have been high and that has put pressure on many households,” Ms Reynolds said.
“While these price cuts are slight, they’re part of a downward trend that is emerging as more investment in new sources of supply comes into the market.
“Meanwhile, a record number of customers are seeking out better deals and we welcome this clear sign of healthy competition.”
While power prices are down, AGL’s gas prices are set to rise, with South Australia expecting a 2.1 per cent increase and NSW gas prices set to rise by 1.8 per cent.
Queensland gas prices will not change.
Energy Consumers Australia CEO Rosemary Sinclair said the electricity price relief was good news and expects other retailers to follow suit.
“We’ll be watching to see what the remaining retailers come up with because we think this is on the low end of what retailers can afford in terms of savings for consumers from July 1,” Ms Sinclair said.
“There is clearly an opportunity here for market differentiation if other retailers decide to offer bigger savings to households and small businesses.
“With the costs of gas and electricity generation and managing the poles and wires falling in many places, consumers are expecting to see prices coming back down to more normal levels having lived with 30 per cent price increases in the past two years.”