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Power bills could shrink for Canberra this year as renewable energy makes electricity cheaper. The ACT's price regulator forecast the price drop in a report also recommending rules forcing electricity retailers to tell their customers if they have a better offer. Average electricity costs could shrink 6.75 per cent next financial year for a typical ActewAGL customer, the Independent Competition and Regulatory Commission predicted. A household using 6500 kWh of electricity a year could save $113 on an annual bill. Large, non-residential customers could pay $697 less per year, while smaller customers could save $174. The commission flagged the potential savings in its draft decision on retail energy prices on Tuesday. Changes in network costs could force it to revise its prediction in a final decision on electricity prices for the next four years. However the regulator said it did not expect network costs to change substantially before the decision, due in May. ACT consumers would continue to pay among the lowest standing offer electricity prices in Australia, the commission said. Wholesale energy costs - making up more than a third of total electricity costs - are expected to fall 6 per cent next financial year on the back of renewable energy growth. National green schemes, although contributing much less to overall electricity costs, are predicted to fall 40 per cent after large-scale generation certificates became cheaper. "This reflected high growth in the expected number of renewable energy projects, above what was needed to meet the 2020 national renewable energy target," the commission said. Changes in the way the commission prices electricity were also behind the expected decrease in bills. The regulator released the draft report after the ACT government last May asked it to look into the transparency of electricity offers. The commission found the difference between the highest and lowest market offer was less in the ACT compared to other states and territories. READ MORE: Customers faced difficulties in comparing offers from electricity providers, it said. A large number of offers and tariff types, discounting practices and the complexity of electricity plans were mainly to blame. The commission recommended changes making it easier for customers to compare electricity offers, and recommended rules forcing retailers to tell customers if they have an offer that would better suit them. ACT Chief Minister Andrew Barr said the news of lower power prices was timely. "It provides a welcome relief for the Canberrans who have had to use increased electricity to keep cool in recent weeks," he said. Mr Barr also pointed to the government's investment in renewable energy technology. ActewAGL is reviewing the draft report and will respond to the commission by March.

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