Electricity price safety nets are set to fall for the first time in six years in many regions from 1 July, with some households projected to save up to $229 on their annual bills.

Compare the Market’s Economic Director, David Koch, said the reductions remained a “big win” for consumers already experiencing financial pressure from increased fuel prices and mortgage interest rates this year.

However, he warned the good news was not a green light to be complacent, with even greater savings available to consumers who shop around.

“This is obviously great news for bill payers in many parts of the country – any relief is welcome,” Mr Koch said.

“But if you’re on a benchmark standing offer plan, you’re already paying more than you need to. It is the ‘safety net’ plan, but they’re certainly not the best deals.

“Putting in ten minutes of legwork and running a comparison while you’re on the train to work or sitting in front of the telly could help you stretch those savings even further.

“It is also worth noting some adjustments were not as generous as regulators initially projected, and prices will in fact go up instead of down in South Australia – so again, the onus is on us to try to secure bigger discounts.”

The Australian Energy Regulator (AER) confirmed average pricing benchmark reductions ranging between -3.4% and -7.7% in New South Wales regions, -7.2%- -10.7% in Southeast Queensland, and an increase of +1.4% or a fall of up to -1.1% in South Australia, depending on tariff type.

The announcement follows news that Victorian Default Offers would drop an average 5% – potentially reducing bills by up to $84 a year.

Default offers were designed as a safety net to protect customers who failed to seek out cheaper offers, and to discourage retailers from charging excessive prices to those who stayed put.

They also act as a reference point for people comparing plans from different retailers, making it easier to discern what offers provide the best value.

Mr Koch said potential savings could stretch further for consumers who shopped around.

“Customers who stick with the same retailer for three or more years fork out $221 more annually than those on new plans. That’s not exactly loose change when we’re also facing higher mortgage rates, rising grocery costs and surging fuel prices. Standing offers will change on 1 July, but they’re rarely the cheapest deal on the market. Customers still need to shop around if they want real savings,” Mr Koch said.

“The decision will also set in motion pricing changes across other market offers. Depending on the retailer, we could see some great deals come online, while others might become less attractive.

“That’s why it’s crucial that people with the power to switch use this opportunity to make sure they’re still on a good deal. Circle 1 July in your calendar and see if you could save – one quick check could return hundreds to your pocket.”