Power move 'could cut household energy bills'

Households could see their domestic fuel bills plunge as a result of new measures aimed at cutting consumption by large firms.

The Australian Energy Market Commission is to release proposals into reforms of the sector tomorrow and it will contain plans to financially incentivise big firms to reduce their power use at peak times, when the cost are highest, the Daily Telegraph reports.

As a result, the running costs of supplying power at these times will be reduced and the plan is for these benefits to be passed on to consumers.

It would mean customers would not need to pay more for investment in increased supply capacity.

Consumers seeking to save money on home energy might also wish to cut their home loan costs by shopping around for better deals.

Australians who want to improve their household budgets can make a start by working out where all their money goes at present.

Last month, a study by the Australian Securities and Investments Commission revealed only 54 per cent of consumers are sure exactly what they spend their cash on.