The new Default Market Offer (DMO) price cap is coming into effect from 1 July, Minister for Energy and Emissions Reduction Angus Taylor said in a statement.
He said average small businesses on standing offers are predicted to save up to $2,392–$2,855 a year.
The move comes as the government recently extended existing measures requiring energy companies to extend relief to small businesses struggling through the COVID-19 pandemic.
In addition, EnergyAustralia joined AGL and Origin Energy in announcing price reductions for customers in New South Wales, South Australia, Queensland and the Australian Capital Territory set to benefit from the changes, with savings varying by state.
Its decision is predicted to have its SME customers experience falls in average annual electricity costs, ranging from $150 in South Australia to $50 in Queensland.
New South Wales business with EnergyAustralia will be expected to save on average $369 on their annual gas bills.
AGL and Origin Energy recently announced electricity price reductions of 1.2 per cent to 5.6 per cent for residential customers in New South Wales, South-east Queensland and South Australia.
Mr Taylor said the announcements from the energy providers are a win for Australian families, individuals and small businesses doing it tough right now in the face of COVID-19.
“COVID-19 is changing the way we live, and for many, it is driving up energy use in their homes. Energy bill relief will be welcomed by many Australians,” he said.
“With wholesale prices continuing to fall for 10 straight months, energy retailers have an obligation to pass on those cuts to their customers and our big-stick legislation ensures the energy companies can be held to account.
“The ACCC has also found that second-tier retailers are offering some of the cheapest plans in the market. This shows how important it is to shop around.”
