The Australian Energy Regulator (AER) has provided a “clear as mud” explanation for their claim that energy prices are going down.

Using the same explanation as the Energy Minister, AER Chair Paula Conboy says they’ve capped the standing offer to create a Default Market Offer.

What this actually means is, if you’ve never negotiated a better price with your energy company, there will be a maximum rate you can pay for electricity going forward.

But, as Steve Price points out, that only affects a fraction of customers.

“The 15 per cent is right and we’re seeing that there are less and less people on those standing offers.

“However, it still does pay to shop around.”

Steve says the government and the AER have done a terrible job of explaining things to the public.

“Clear as mud from my point of view,” he says.

“I don’t think people out there in the real world have got any idea what she’s talking about.”

Click PLAY below to hear the full interview

Callers flooded the openline after the interview saying they had no idea what Ms Conboy was talking about.

Ian had a tongue-in-cheek explanation for Steve to clear everything up.

“You take 5/6ths of 7/8ths of the sixth decimal point. You take the average of the previous week, you put it onto the cap and then you find out what the balance is and then you finally determine what the average ratio is and you’ll get there mate. That’s how it works!”

Caller Tracy was a little more blunt.

“What that woman said, it was clear as mud, I didn’t understand a thing.

“I wouldn’t have a clue what she was on about.”

Click PLAY below to hear their calls

You can compare electricity deals using the government’s website, CLICK HERE

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