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NSW electricity deregulated from Tuesday

Electricity prices will be deregulated from Tuesday in NSW, a move the government says will force retailers to offer cheaper rates.

From July 1, the new deregulated regime will mean fixed and variable electricity charges will automatically be cut by 1.5 per cent.

The Baird government says more than a million customers on a regulated price will see a reduction in the face value of their electricity charges - the first fall in 15 years.

In 2013, the Independent Pricing and Regulatory Tribunal (IPART) and the Australian Energy Market Commission (AEMC) found the NSW electricity market was competitive and that regulation was unnecessary.

In its report, the AEMC highlighted that customers could save $300 to $400 per year from an average household bill of $2500 by taking advantage of the deals offered by electricity retailers to customers on competitive market contracts.

But Labor is worried the new model will see prices hiked in the longterm.

The opposition points to the deregulated and privatised markets in South Australia, which has the highest electricity bills on average in the country, and Victoria, where prices have recently risen.

Meanwhile, families will be getting more assistance from the government to pay for their energy bills from July 1, with the NSW energy rebate increasing from $125 to $150 per year.

It will also be a little easier for people to enter the property market from Tuesday, with the threshold for the $15,000 first home buyers grant being boosted by $100,000 to $750,000.

But the payment will no longer be available to foreigners from Tuesday and will be restricted to one grant per person, per year.

Among other major legislative changes to come into effect on July 1 will be the Travel Agents Repeal Bill, which will mean travel agents will no longer have to be members of the Travel Compensation Fund. The government says the changes will remove red-tape from the industry.

Legislation paving the way for a state deputy ombudsman for Aboriginal programs will also come into force on July 1. The deputy ombudsman will have investigative powers to monitor and assess Aboriginal programs in NSW.