Energy regulator announces lower charges

Households across four states and the ACT will be rejoicing in lower power bills, the biggest winners being South Australians.

The Australian Energy Regulator (AER) proposed on Thursday lower network charges for electricity distribution from July 1.

South Australian households will save $197 on average over the next financial year.

NSW and ACT will save between $22 and $25, Queensland $34 and Tasmania $24 in determinations from the national electricity regulator.

But the AER says the final outcome will depend on whether savings are passed on to customers.

"I urge retailers to pass on these savings to households and encourage customers to shop around for the best market offer," South Australian Treasurer Tom Koutsantonis said.

Power prices are a hot political topic in Queensland.

The state government has come under fire for its decision to defer deregulation of electricity prices for a year, making it the only state to have a regulated power market.

"(Deregulation) would have seen more competition, more opportunity for consumers," Queensland Opposition Leader Lawrence Springborg said.

The Energy Retailers Association of Australia has welcomed the decisions, saying lower cost pressures on retailers would probably lead to the savings being passed on to customers.