Electricity giants are being put “on notice” by federal Energy Minister Angus Taylor to lower power bills or face political consequences.

The pressure is on the electricity giants to abolish standing offers by January 1, otherwise the government will introduce a default market price six months later.

Mr Taylor insists “loyalty taxes”, where customers end up paying more after cheaper prices to lure them in expire, will be scrapped from July 1.

The minister also expects retailers to take the lead in making it easier for customers to compare deals with a voluntary comparison rate.

He tells Ross Greenwood it’s “particularly important for small business”.

“About 20 per cent of small businesses are on these standing offers because they simply don’t get time to negotiate something better, and they get stung.

“Those standing offers… have got higher and higher over time.”

Mr Taylor says “it’s not fair”.

“It’s simply not fair that a small business person, or a householder who is too busy picking up the kids or driving home from work in the afternoon, should get stung because they’ve trusted their energy company.

“That’s not on.”

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