Treasurer Josh Frydenberg says a default energy price might only deliver modest savings on power bills.
The federal government has announced it would bring in a default price for retailers that could save customers as much as 832 dollars a year.
It follows a recommendation by the head of the Australian Competition and Consumer Commission, Rod Sims.
The Australian Energy Council ((AEC)), which represents major electricity and gas retailers says substantial savings would only be available for customers in South Australia who switched from the highest-priced offer in the market to the cheapest deal.
Mr Frydenberg has told the A-B-C savings will vary.
