Energy giant AGL is to cut electricity prices across NSW, Queensland and South Australia from July 1.
For residential customers this will mean an average 0.3 per cent fall in NSW, 1.6 per cent drop in Queensland and 0.4 per cent cut in SA.
Queensland small businesses will save one per cent off their bills, while the cut will be 0.1 per cent in NSW and 0.3 per cent in SA.
“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,” AGL chief customer officer Melissa Reynolds told AAP on Friday.
Prices could fall even lower with greater policy certainty, she said.
“AGL supports the policy certainty that would come with implementation of the national energy guarantee.”
Energy Consumers Australia CEO Rosemary Sinclair said while the cuts were welcome they were on the “low end” of what retailers could afford to deliver.
“There is clearly an opportunity here for market differentiation if other retailers decide to offer bigger savings to households and small businesses,” she said.
“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.”
The competition watchdog is due to report this month on electricity prices.
AGL’s gas prices in Queensland won’t change, but will rise for NSW and SA small business and residential customers.
Revised prices for Victoria won’t be released until January.