The government's simple electricity bills to save hundreds of Victorian households

Energy Minister Lily D'Ambrosio said that as of July 1, consumers could abandon expensive and confusing electricity offers in favor of a fair price, evaluated by experts.

"It's been one of the most important reforms in the energy sector for more than a decade – and it's not just accessible to people who currently have standing offers; anyone can ask for the default Victorian offer, "said D'Ambrosio.

"We attended the last election promising ourselves to hold the electricity companies to account and hand over power to Victorians, and that is exactly what we deliver here today. "

But the savings announced Thursday morning by the government are less important than those calculated by the Commission essential services in March, when he presented his draft notice to the government on the nature of the default offer.

The regulator has proposed a default offer that would have saved households between $ 390 and $ 520 a year and typical small businesses a saving of $ 1,800 to $ 2,300.

Loading

The commission said it thought it had set a "fair price" for customers.

"Our proposal puts enough money on the table to provide electricity to all Victorian customers at a fair price and to allow retailers to make a fair profit," said the Chair of the Commission. Ron Ben-David, in March.

However, electricity retailers have fiercely opposed the default offer and warned that they would drive out some market players.

The Australian Competition and Consumer Commission has also warned the regulator that this could have unintended negative effects on the Victorian retail market, which could cost consumers more in the long run.

The Consumer Action Law Center quickly approved the change, saying the default offer would give Victorians the opportunity to choose a simple and fair price for electricity, instead of reviewing a series of complex transactions and often expensive.

"Price deregulation in 2009 has allowed energy retailers to benefit from complex pricing and unfair conditions," said Gerard Brody, General Manager of Consumer Action Law Center.

"The purists of the economy were wrong: ceaseless, expensive and aggressive marketing did not lead all members of the community to have access to competitive or fair offers."

More soon.