Electricity giant AGL has announced it will slash power bills by seven per cent for some South Australian customers.
Those on standing offers will now be protected by a safety net that automatically discounts bills, aligning them with the majority of customers already on discounted market rates.
"I welcome AGL's decision to do really what they should have done a while ago," Energy Minister Dan van Holst Pellekaan said on Friday.
"I call on all other electricity retailers to follow AGL's lead and do exactly the same with their standing offers so that all South Australians will receive the same benefit."
Mr van Holst Pellekaan said AGL is the largest electricity retailer in South Australia, with about 40 per cent market share.
He said the cut, which applies to usage but not supply charges, puts other retailers under pressure to follow suit.
"If others don't follow, it will be up to consumers to make it very clear who they prefer," he said.
AGL's price safety net policy is expected to help more than 150,000 individuals and 27,000 small businesses, the energy provider told AAP on Friday
Savings will differ state to state, with households and small businesses in Victoria and NSW to see a 10 per cent reduction in their bills, compared to seven per cent in SA and five per cent in Queensland.
The changes will take effect from January 1.
