Small to medium sized businesses can expect savings on their energy bills of between five and 10 per cent following the axing of the carbon tax, the consumer watchdog says.
And for larger companies the returns could be much greater, according to the Australian Competition and Consumer Commission.
The coalition federal government has given the ACCC greater powers to ensure the benefits of the carbon tax repeal are passed onto consumers by allowing it to impose heavy penalties on companies found guilty of price exploitation.
ACCC chair Rod Sims has told an energy conference the watchdog was still assessing the extent of the savings.
However, for small to medium sized businesses annual energy savings could be as much as 9.7 per cent in Victoria and 8.3 per cent in NSW.
They were likely to be lowest in South Australia at 5.2 per cent.
Mr Sims described the returns to the businesses as “significant”.
“For larger users … the savings will be larger, as your network costs are a smaller part of your energy bill,” Mr Sims told the Annual Energy Users Association of Australia Conference in Melbourne on Monday.
“In some cases the savings could be a multiple of those shown.”
The Abbott government had estimated electricity costs would fall by nine per cent and gas prices by seven per cent as a result of its repeal of the former Labor regime’s carbon pricing scheme.
PROJECTED SAVINGS FOR SMALL TO MEDIUM SIZED BUSINESSES:
* VIC – 7.4 to 9.7 per cent
* ACT – 9.3 to 9.5 per cent
* QLD – 8.5 to 9.1 per cent
* NSW – 7 to 8.3 per cent
* SA – 5.2 to 6.3 per cent