Origin has promised customers in Queensland and South Australia a price cut on their power bills that could be the start of a downward trend.
Prices in those two states will come down by up to four per cent from July 1, while an expected price rise in NSW and the ACT won’t be passed on, retail general manager Jon Briskin announced on Tuesday.
He believes electricity prices can come down further for households and businesses if Australia can come up with a long-term energy policy to encourage investment to replace power stations.
Mr Briskin called on industry and government to continue pursuing the National Energy Guarantee.
Energy Minister Josh Frydenberg says the announcement is a step in the right direction and claims Australia has ‘turned the corner’ on energy policy.
He’s confident the guarantee can get the support of the states, territories and his own colleagues, some of whom have been vocal in their opposition.
South Australian Liberal Tony Pasin said Origin’s announcement was the result of strong competition and expects other retailers to follow suit.
‘I can’t see Australian consumers exercising loyalty to energy companies in circumstances where prices are substantially different.’
Labor Senator Murray Watt said price cuts were a welcome development, but also flagged the need for long-term policy while calling the announcement a good first step.