AGL will reward loyal customers with $80 off their bill

ELECTRICITY customers have long been rewarded for switching to another provider with generous discounts, but one company has decided to reward customers just for staying on.

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SIXTY FIVE thousand AGL customers will be given a late $80 Christmas present, with a 5 per cent no-strings-attached cut to their power bill.

The gift will go to customers who have remained on the so-called “standing offer’’ which was kept as a safety net when electricity was privatised and consumers could leave AGL to pursue the best “market offer”.

But welfare groups have criticised the retention of the standard offer because, rather than protect the vulnerable, they say it locked in many poor, uninformed, badly educated, illiterate and innumerate customers into higher prices.

But AGL chief customer officer Melissa Reynolds said the cut was a reward payment for customers who stayed with the contract – despite a company awareness campaign last year about switching to market offers.

AGL customers will get a late $80 Christmas present - a 5 per cent no-strings-attached cut to their power bill.

The discount would be offered to households that have been on the scheme for two years or more with AGL.

“It is recognition of the fact that although more customers are engaging in the market to access the benefits of competition, not everyone has engaged so we want to assist them in getting a lower rate,” she said.

“There are better market offer contracts available for customers in South Australia.

“We encourage everyone to engage with the market to find the deal that suits them best.’’

South Australian Council of Social Service chief executive Ross Womersley said “any discount is welcome”.

“But anyone still on a standing offer should get off it because there are significant savings to be made from getting on a market offer,’’ he said.

South Australian Council of Social Service chief executive Ross Womersley.

“Remember electricity CPI in Adelaide for the last year is 24.4 per cent so a 5 per cent discount may barely be noticed.’’

Mr Womersley said the AGL offer also was designed to discourage customers from a deal the State Government has struck with Origin energy to provide customer discounts.

“That had a range of qualities and a much more substantial 18 per cent discount on both supply and usage charges in contrast to the 5 per cent loyalty payment,’’ he said.

“So we would strongly encourage those energy concession recipient households to ask AGL to at least match, if not even better, the Origin arrangements or to switch to Origin post haste.’’

Uniting Communities energy expert Mark Henley said it was “about time” loyalty was rewarded but urged customers to keep shopping around.

“This development does not change our ongoing advice to all energy customers to periodically ring their retailer and ask for a better deal,” he said.

“Those who ask are still much more likely to get a better deal than loyal customers who do not ask.’’