What are the potential shifts in power prices? Here’s a breakdown, state by state, outlining some suggested figures.

According to caps proposed by the Australian Energy Regulator on Tuesday, some households may experience a slight reduction in power bills, while others could face a modest increase starting from July. These caps, known as default market offers, vary on a state-by-state basis as there is no national cap in place; instead, they are determined independently, often not by state governments.

A default market offer functions as a price ceiling. In regions with multiple energy providers, various contracts or plans for power prices are offered. However, unless customers actively select an alternative plan, they are typically enrolled in the company’s default plan. The AER’s default market offer sets a limit on the annual charges that companies can impose for this basic, automatic plan.

AER Chair Clare Savage explains, “When [a power company is] making an offer to you, they have to say how it compares to the default market offer.” It’s essential to note that these figures are currently proposed and subject to confirmation in May.

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