Photo: Carbon tax repealed: AGL says it has begun work applying changes to their gas and electricity rates.
Consumers can expect to save between 20 and 50 cents each day on their electricity bills now the carbon tax has been repealed.
Refunds will be issued for bills that included the carbon tax issued from July 1 this year - the timing of the refund will depend on individual bill cycles.
Energy Australia says the carbon component in its bills will be removed from prices by mid-September and will be applied as a credit on household bills.
Executive manager of corporate affairs Clare Savage says electricity prices for residential and small business customers will fall.
"We understand customers are facing cost-of-living pressures and the repeal means electricity prices will now drop," Ms Savage said.
"We have been clear [in saying] we will pass on the savings to households once the Federal Government stops collecting the tax from us.
"The carbon price removal will impact electricity and gas costs differently for each user as it will depend on their current tariff, where they live and how much energy they use.
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"We will notify customers in the coming weeks about the pricing changes and what that will mean for them."
Ms Savage says work has already been done to remove the carbon component from the hundreds of different products and tariffs.
"Unfortunately implementing system changes to remove carbon is not as simple as pressing a button - altering prices is a highly complex process and it's important we make sure the changes are done correctly," she said.
A spokesman for energy company AGL told the ABC: "AGL Energy will communicate directly with customers about their price reductions due to the removal of the carbon tax.
"We have begun work to apply the relevant changes to our gas and electricity rates.
"Once changes to our billing system have been implemented and tested, price reductions will be backdated to 1 July 2014. We expect this process to be complete in August or September."
The Australian Competition and Consumer Commission (ACCC) has been allocated $10 million over three years to monitor prices before and after the carbon tax, and to make sure savings are passed on to consumers.
Under the arrangement announced earlier this year, the ACCC was directed to consult with business and industry to seek information about prices, price-setting practices, and how the carbon tax scheme has impacted on pricing structures and carbon component costs.
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Energy Supply Association of Australia (ESAA) chief executive Matthew Warren says repealing the carbon tax in July has made it much easier for consumers to see savings sooner.
"Most energy companies should have already provided a significant amount of information regarding their carbon costs to the ACCC," Mr Warren said in a statement.
"Energy companies have already had significant scrutiny by the ACCC and we expect this to continue until the repeal process is completed."
The Australian Retailers Association (ARA) has long criticised the carbon tax, and executive director Russell Zimmerman is pleased with today's repeal.
"We have given direct evidence to both the former and new governments over how much this tax impacted retailers," Mr Zimmerman says.
"There is no doubt this boost to retailers' bottom lines and the pockets of consumers will assist the sector to overcome pressures from excessive costs and be a boost to current low consumer confidence."
Choice spokesman Matt Levey said beyond electricity, consumers were unlikely to notice much direct reduction in prices.
"The most noticeable impact for households will be a reduction in energy bills. This will vary across Australia and across households, but on average it will be around $200 to $260 per annum.
"This does not mean that prices will go back to pre-carbon price levels, because both gas and electricity have increased for a range of reasons, of which the carbon price is only one.
"In fact, in the case of gas, prices on the east coast are set to increase dramatically, while most recent electricity rises have been driven by spending on poles and wires."