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Speaker 1: Some breaking news out of the energy situation in Australia.

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Speaker 1: Well there's two bits, I suppose. One is the New

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Speaker 1: South Waleses government has decided to leave a coal fired

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Speaker 1: plant are Ring over there open for another couple of

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Speaker 1: years till twenty twenty seven. It was due to close

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Speaker 1: next year, but they've heard the warnings from a EMO,

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Speaker 1: the market operator, saying we're in for a shortage of electricity,

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Speaker 1: particularly New South Wales and Victoria over summer, and especially

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Speaker 1: if it's a hot summer, expect blackouts. So they are

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Speaker 1: going to leave their coal fired power station operating for

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Speaker 1: at least another two years until renewables catch up and

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Speaker 1: plug the gap. Okay, so there's that. The other bit

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Speaker 1: of news that we'll talk about right now is in

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Speaker 1: the last few minutes the Australian Energy Regulator has put

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Speaker 1: out its default market offer price. It's been operating off

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Speaker 1: a draft for the last little while and inviting comments

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Speaker 1: on that, but it caps what the DMO does. The

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Speaker 1: default market offer caps the price retailers can charge household

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Speaker 1: and small business customers on standard retail plants. In Essay,

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Speaker 1: New South Wales and Southeast Queensland. There's your national market

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Speaker 1: for you. But what it basically means here in South

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Speaker 1: Australia is prices will decrease by around twenty one percent

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Speaker 1: in South Australia and between seven and eleven percent across

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Speaker 1: New South Wales and Southeast Queensland. Only marginal zero point

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Speaker 1: two of a percent, so we've got it good compared

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Speaker 1: to them twenty one percent in South Australia. It means

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Speaker 1: realistically that's about for the average household one hundred and

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Speaker 1: forty seven dollars less than last year. Now the catch is,

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Speaker 1: because it's always a catch, don't think that means you're

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Speaker 1: necessarily going to see a fall because only seven point

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Speaker 1: six percent of customers are on the default market offer,

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Speaker 1: so they don't presumably have a plan with anyone. They're

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Speaker 1: just on the basic setup as it were. They haven't

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Speaker 1: signed a contract. Gavin Dufty, Saint Vincent de Paul on

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Speaker 1: the line. Welcome news regardless, Gavin, good morning, thank you

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Speaker 1: for your time y.

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Speaker 2: Good warning, Matthew, Yes, very welcome news. As you pointed out,

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Speaker 2: what this indicates is the default price start, which is

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Speaker 2: how much the market can choose charge the maximum price.

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Speaker 2: The AER has squeezed that and it is coming down,

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Speaker 2: which is great. That's good for the seven percent of

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Speaker 2: people that are on that, And I have to stress

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Speaker 2: this is the most expensive price in the market. There's

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Speaker 2: nothing more expensive than this. So five people, if they're

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Speaker 2: on that product the VMO, they should shop around. They

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Speaker 2: will get a much better deal, and that will be

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Speaker 2: in the hundreds of dollars on top of this reduction.

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Speaker 2: What it does indicate for the bulk of us is

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Speaker 2: the other ninety three percent that are on some sort

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Speaker 2: of market offer. They've called up their energy company and

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Speaker 2: said give it to a deal. It indicates to them

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Speaker 2: that those market prices are also coming down. Now. The

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Speaker 2: reason for that is the aer's decision is based on

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Speaker 2: previous two years of wholesale prices. Those previous two years,

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Speaker 2: those prices are coming down, but all of that's not

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Speaker 2: displayed in the DMO. But if you go to a

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Speaker 2: market offer, you'll be able to get the full benefit.

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Speaker 2: So it is good news. There is more on the

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Speaker 2: table than that, and i'd encourage people to shop around

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Speaker 2: to make sure that they make sure they're getting everything

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Speaker 2: in their pockets and not the pockets of sheowl.

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Speaker 1: Yeah, absolutely, that is important. Now, if somebody who might

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Speaker 1: be on a DMO at the moment. At the fault

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Speaker 1: market offer isn't signed up to a plan. If they

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Speaker 1: ring a supplier today, will the new price reflect this

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Speaker 1: drop today?

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Speaker 2: And no. So with the fault market offer, that price

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Speaker 2: will change for those households on the first of July

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Speaker 2: if they do nothing now. If they ring up and

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Speaker 2: say I don't like this to fault market offer, I

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Speaker 2: know it's the most expensive in the market. What's your

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Speaker 2: best deal, they will get a bigger reduction. Okay, because

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Speaker 2: this is the feeling in the market.

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Speaker 1: Okay, but should you wait till the first of July.

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Speaker 2: There's two ways to look at this. If you can

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Speaker 2: get a deal now, I would lock it in. The

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Speaker 2: market generally doesn't have exit fees anymore, so there's no

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Speaker 2: penalties if you choose to change mind. So get your

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Speaker 2: best deal that you can now, and then first of

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Speaker 2: July when all the polls and wise prices start to

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Speaker 2: change and the market resets again. If you can grab

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Speaker 2: a little bit more, grab it. But if you can't

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Speaker 2: grab a little bit more, you can kick back and

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Speaker 2: you have a cup of coffee and say I did

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Speaker 2: pretty good because I locked in the prices now before

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Speaker 2: they went up, so now's good. Get your best price,

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Speaker 2: wait until post July when the price is reset. If

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Speaker 2: you can, if you can cream a little bit more,

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Speaker 2: go for your life.

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Speaker 1: Okay, good tonight, Gavin, really appreciate your time. Thank you,

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Speaker 1: Thank you, Matthi Gavin Dufty there from Saint Vincent de

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Speaker 1: Paul