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Electricity price safety net gets thumbs up from farmers
23 February 2019
The National Farmers' Federation (NFF) welcomes further progress aimed at reducing retail electricity prices with the Australian Energy Regulator's release of its Default Market Offer (DMO) draft Determination for consultation.
"The DMO will help reduce prices for those on standing offers by acting as a reference price for retailers to advertise their market offers," CEO Tony Mahar said.
"These measures were recommendations from the Australian Consumer and Competition's (ACCC) report on retail electricity pricing inquiry and are consistent with the NFF's position to improve market transparency for residential and small business customers - particularly farmers."
Mr Mahar said the current electricity market was a 'mess'.
"Retailers have been confusing and misleading customers by creating discount offers that did not always reflect the cheapest offer a customer could take.
"A price safety net will help farmers navigate through the hundreds of different market offers from a variety of providers to select what deal is best for them."
Modelling by the Australian Farm Institute revealed energy costs (including electricity) averaged 9% of farm input costs, with costs much higher in more intensive industries such as irrigation and horticulture.
"While we know there is a lot more work to be done to reduce electricity prices, the DMO is a step in the right direction.
"The NFF looks forward to continuing to engage with this work as it matures to its final form," Mr Mahar said.
Media Enquiries: Laureta Wallace
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