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$275 energy price promise – officially broken

Joint media release

Shadow Minister for Climate Change and Energy, Ted O’Brien MP
Shadow Minister for Energy Affordability, Melissa McIntosh MP
Shadow Minister for Education, Senator for Victoria, Senator Sarah Henderson

The Albanese Labor Government has run out of excuses after officially breaking its election promise to reduce household energy bills by $275 following the release of draft regulated electricity prices.

The draft Default Market Offer has confirmed that Labor has fallen short by up to $1,027 of its promised price reduction for everyday households, equivalent to a 37 per cent increase since Labor came to power.

Small businesses have also been hit hard by Labor’s spiralling energy crisis with bills soaring by up to $2,047 for the same period.

Startling new figures from the Australian Energy Regulator reveals 116,753 people have been placed into hardship due to their skyrocketing energy bills and 192,459 people are now in energy debt.

Senator for Victoria Sarah Henderson said the price of energy was consigning locals to energy poverty.

“Labor was elected on a promise that it would reduce household electricity bills by $275 but instead Victorians are now paying among the most expensive bills in the world,” Senator Henderson said.

Yet, ironically, residents and small business owners across regional Victoria have been hit with an average price increase of 20 per cent (see background data below).

Data from the five power networks covering Victoria’s metropolitan and regional areas shows average annual bills have surged to between $1,285 and $1,519.

“This is simply unaffordable for residents in my community who are already suffering under Labor’s out of control cost-of-living-crisis,” Senator Henderson said.

The Shadow Minister for Climate Change and Energy Ted O’Brien said Labor’s broken promise on energy prices was “unforgivable”.

“The Australian people deserve nothing less than a complete and unreserved apology from Prime Minister Albanese for making households and businesses pay for his failures.”

“Labor has lost all credibility on energy prices and has completely shattered its trust with the Australian people.”

“Labor has failed to deliver on its all-important promise to reduce energy prices by $275 on 2021/22 levels and now owes the average Australian household up to $1,027.”

Despite the power price pain felt by millions of Australian households and businesses, Labor has refused to admit its $275 promise was a lie. Labor repeated this claim on 97 separate occasions ahead of the last Federal election and reiterated it after the invasion of Ukraine.

Shadow Minister for Energy Affordability and Western Sydney, Melissa McIntosh said Labor had abandoned everyday Australians who were suffering amidst Labor’s cost-of-living-crisis.

“After dodging questions on Labor’s $275 power price promise there is now nowhere left for the Prime Minister to hide,” Mrs McIntosh said.

The draft DMO, released by the Australian Energy Regulator, sets the ‘reference price’ for electricity bills for the 2024-2025 period and will now be consulted on before the final determination is made in coming months.

The final 2023-24 DMO recorded a slight increase in the overall cost of electricity, throwing into the question the likelihood of any substantial changes before the final determination for the 2024-25 DMO is made.

Average bills (Victoria)
– Residential Customers

VIC – Small business

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