Reference Price - NSW
Reference Price – NSW
What is the reference price? (NSW only)
In the past, comparing energy plans has been difficult. Each energy provider had their own base energy rate and would discount off this rate. This meant that a 20% discount from one retailer did not necessarily match a 20% discount from another. So to make things easier for customers, the government established a “reference price” based on an average customer’s annual cost. The reference price is different depending on where you live because energy usage and distribution costs vary across the state. It’s important to note that your reference price is based on the energy usage of a typical customer in your area and therefore helps you compare energy plans. It’s not the actual cost you will pay, which depends on how much power you ultimately use.
Example:
- The reference price in your area is $1000, based on a typical customer who uses 4000 kWh per year.
- If a retailer advertises an energy plan that is 10% less than the reference price, that means the same typical customer using the same amount of power would pay $900 per year.
- Your actual cost may not be the $900, as this will depend on how much power you ultimately use, but the reference price is handy for getting a quick basic comparison.
