Origin agrees to lower electricity prices

Origin Energy has conceded to pressure from both the government and from the public, announcing yesterday that it would significantly reduce previously announced plans to significantly hike electricity prices in Queensland. 

The news will affect customers on FlexiChoice and FlexiPlus market contracts, who can expect an average 11 per cent reduction on previously advised rates.

"We understand that our customers are concerned about the price of energy," said Origin managing director Grant King in a statement released July 17.

"We acknowledge that our communication with customers and the government on these issues could have been better and could have improved customers' understanding of price changes."

The decision brings Origin's prices into line with the government instigated "freeze" on the regulated general residential tariff.

The news will likely be welcomed by Queensland premier Campbell Newman, who has been outspoken in his disapproval of Origin Energy's price increases.

Last month the Queensland government announced it would be looking into cancelling more than 2,500 contracts with the electricity supplier, a decision that was forecast to potentially cost Origin upwards of $26.7 million.

Origin has announced that it will be writing to all affected customers to ensure they are aware of the new rates, and no customers will be billed at the previously announced prices.

Posted by Charlie Moore