Victorian households could save up to $450 a year with the setting of default prices for energy networks.
Starting from July 1, the new regime means anyone on a ‘standing offer’ will automatically be rolled over to the new, cheaper price.
“This is the single biggest reform in the energy market in more than a decade,” Energy Minister Lily D’Ambrosio told reporters on Thursday.
“Victorians have had a very tough deal being able to navigate the market, it’s deliberately confusing.”
Prices will vary according to location and distribution network, but households are expected to save between $310 and $450 per year.
Businesses could save between $1380 and $2050.
Energy companies can also offer customers prices which undercut the default offer, Ms D’Ambrosio added.
The prices have been set based on advice from the Essential Services Commission.