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AER plan to make power bills simpler, and allow consumers to find a better deal

Consumers are being turned off by the “doublespeak” of power retailers, the energy regulator says – and it has to be easier for us to find the best deal.

Consumers’ electricity bills must be made simpler and easier to understand, the Australian Energy Regulator says.

The power system was becoming more complex and confusing and retailers must help customers get the best deals, the AER says of reforms being announced on Monday.

Basic information on the amount owed and due date must be separated from the detail on how it was calculated.

That opening page must also give customers a link to check whether they could get a better deal and contact numbers for inquiries, complaints, fault reports and the South Australian Energy and Water Ombudsman.

AER chair Clare Savage said the complexity of bills meant many consumers put looking for the best deal in the too-hard basket. Particularly consumers in financial stress often struggled to understand their bills, she said.

“The changes we are proposing are aimed at helping consumers make choices that are right for their individual circumstances,” Ms Savage said.

“People across Australia lead busy lives and have limited time to understand their energy bills, let alone check whether they are on the best plan. We want to do whatever we can to make life easier for all consumers, while assisting them save money where possible.”

Clare Savage, chair of the Australian Energy Regulator.
Clare Savage, chair of the Australian Energy Regulator.

The reforms stipulate the bills will need to be structured in tiers and written in plain language, without jargon and acronyms.

The opening page must give the basic, tier one information described above.

The second tier must summarise the deal the customer is on, using a standardised form which will make it easier to compare plans.

It must break down the calculation of the bill by listing meter readings, rates and tariffs, usage by peak or off-peak, solar data, and other specified factors.

Retailers can provide further information, but only at the end of the bill.

The AER has opened consultation to the end of January, with reforms to be phased in from August 2022 and fully implemented by March 2023.

Alongside the bill reforms, the AER wants to ensure people struggling to pay their bills are identified and helped sooner, including those who are too embarrassed to say they can’t pay or don’t know what to do.

Ms Savage said there had been a concerning increase in average debt 90 days or more in arrears, from $640 in 2016-17 to $1000 in 2020-21, nationally.

In SA, the average debt was even higher at $1277, the second worst state after Tasmania.

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Original URL: https://www.adelaidenow.com.au/news/south-australia/aer-plan-to-make-power-bills-simpler-and-allow-consumers-to-find-a-better-deal/news-story/55d3a9ddd56d17d37ed75bd9ff152c19