"There are savings of up to 8% available to customers who switch," ESCOSA chairman, Lew Owens said.
"In addition, concessional customers can access a Government funded switching incentive payment."
Owens made the comments when releasing ESCOSA's review of the cost components of standing contract prices for 2004 electricity supply by AGL to small consumers under mandated provisions of the Electricity Act.
AGL is required to sell electricity to every small consumer who seeks supply, and is not allowed to refuse a request. It currently sells electricity to over 98% of the State's 750,000 small consumers under the mandatory arrangements.
"ESCOSA's comprehensive review over the past few months of costs incurred by a standing contract retailer has concluded that while there have been reductions in wholesale energy costs, these have been offset by increases in operating costs and network charges," Owens said.
"The net effect is that the overall level of standing contract prices for 2004 will remain at the same level as has applied in 2003."
ESCOSA's Final Report on its review includes comments on the submissions it received on a Discussion Paper and an Issues Paper released on this subject over the past few months. As part of the review, ESCOSA engaged consultants IES to assist it undertake modelling of the wholesale electricity price for 2004, and to respond to comments in various submissions about the IES methodology.
"The conclusions of the review represent ESCOSA's assessment of the prudent costs of a retailer undertaking the special responsibilities of the standing contract offer," Owens said.
"ESCOSA agrees that lower prices are available to new entrant retailers who have commenced offering market contracts to small consumers in 2003, and these competitive advantages are available to consumers who switch suppliers."
Owens also said that the free "Electricity Price Comparison Service" established by ESCOSA to assist residential consumers to compare market offers handled more than 3,600 calls in its first six weeks of operation.
