AGL cuts prices for electricity standing offer customers with implementation of DMO

AGL today announced new cuts to electricity prices for standing offer customers as part of the Federal Government’s Default Market Offer (DMO).

From 1 July, 2019, the DMO will act as a regulated price cap for residential and small business standing offer customers on flat tariffs.

AGL Interim Chief Customer Officer Mark Enzinger said the DMO would apply to all customers on flat standing offers, including those currently on loyalty discounts.

AGL will also reduce prices on its non-flat standing offer tariffs to support greater transparency and consistency across standing offer tariffs.

In addition, from 1 July, for new markets offers AGL will feature a guaranteed (unconditional) discount option and will continue to feature simple low rates.

“We’re committed to making it simple and easy for our customers to find the best plans available,” Mr Enzinger said.

“AGL and all retailers must change their standing offer to ensure that customers are not charged more than the default price on a standing offer contract.

“The changes are designed to empower and encourage customers to find the best energy plans available.

“In addition to this, over the coming months we’ll continue to proactively contact customers who we’ve identified could benefit from reviewing their current energy plan to help make sure they are on the best plan available.

“As part of the new regulations, a Reference Price will also be introduced allowing customers to more easily compare electricity plans.

“This means retailers will need to explain how the total cost of a customer’s market contract, including the value of any discounts, compares to the Reference Price.”

AGL also announced gas price changes that are unrelated to the DMO.

AGL's gas prices will rise by 4.5 percent in South Australia, 3.5 percent in New South Wales and south-east Queensland and 1.3 percent in Western Australia.

“We are committed to keeping gas prices competitive and any decision to change prices is based on a detailed consideration of a range of factors including costs, market conditions and the value we offer customers,” Mr Enzinger said.

The following table summarises the changes taking effect from 1 July, 2019.



NSW SA QLD WA

Electricity Standing Offer^

-8.5% -3.6% -7.1% N/A

Gas

3.5% 4.5% 3.5% 1.3%

^ These are average figures based on AGL's published electricity standing offer flat tariffs. Existing electricity standing offer customers with loyalty discounts will not have their underlying energy tariffs changed but their overall loyalty discounts may change.

For more information on how AGL's rates compare to the Reference Price, see agl.com.au/src.



About AGL

AGL is committed to helping shape a sustainable energy future for Australia. We operate the country’s largest electricity generation portfolio, we’re its largest ASX-listed investor in renewable energy, and we have 3.6 million customer accounts. Proudly Australian, with more than 180 years of experience, we have a responsibility to provide sustainable, secure and affordable energy for our customers. Our aim is to prosper in a carbon-constrained world and build customer advocacy as our industry transforms. That’s why we have committed to exiting our coal-fired generation by 2050 and why we will continue to develop innovative solutions for our customers.