The energy watchdog has launched a regulated electricity price that will slash power bills for almost 800,000 households across NSW, Queensland and South Australia from July.

The Australian Energy Regulator (AER) has developed new base power prices as a safety net for households not on discounted power bill offers, which are known as 'standing offers'.

Energy watchdog head Paula Conboy said a regulated power price was needed to stop households being ripped off. Credit:Louie Douvis

“Standing offers are no longer working as they were intended, causing financial harm to disengaged consumers. Our final decision will bring down bills for most people on those offers,” AER chair Paula Conboy said.

Households on standing offers in New South Wales could now save between $129 and $181, depending on their distribution zone, up to $118 for those in south-eastern Queensland, and about $171 for consumers in South Australia.