Energy Council wary of default power price

[dricia]

Most Australian's won't benefit from a default electricity price, the Australian Energy Council warns.

Representing more than 20 major electricity and gas retailers - such as AGL, Origin and Energy Australia - the council says consumers will benefit the most by shopping around for the best power deal.

The Morrison government has kicked into gear further mechanisms of its plan to lower electricity prices, on Tuesday announcing work would begin to set a default power price for retailers.

A reference bill will also be established so consumers can check their discounts against a common reference point.

The Morrison government used figures from the Australian Energy Market Commission to highlight the announcement, saying customers in South Australia could see savings of more than $800.

"Savings of that magnitude are only available for a customer who switched from the highest-priced offer in the market to the cheapest deal," Australian Energy Council chief executive Sarah McNamara said.

"For the majority of customers who have already switched to a market offer, the government's proposed default price won't lower their bills."

Ms McNamara said the government should be wary of unintended consequences of its energy plan, adding that the interventions did not fill the policy vacuum since the demise of the National Energy Guarantee.

The Business Council of Australia said "ad hoc intervention" in the energy market, such as underwriting generation investment or forced divestment, sent the signal that investing in Australia came with considerable risks.

Energy Minister Angus Taylor will meet with his state and territory counterparts in Sydney on Friday to discuss implementing the default market price and reference bill.