Andrews Government deal to give Victorian households a refund on energy bills

POWER companies will return at least $71 million on set-and-forget power bills and more than 285,000 Victorian households will be granted a refund worth up to $720 a customer.

Plumpton resident Zerin Hassan contemplates a power bill. Picture: Ian Currie

MORE than 285,000 Victorian households will be granted a refund on their power bills worth up to $720 a customer.

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The Sunday Herald Sun can reveal power companies will return at least $71 million on set-and-forget power bills under a deal negotiated by the Andrews Government.

The rebate will be paid to customers on non-discount plans and will see them applied to bills from January 1.

But in a bittersweet day for consumers, it can also be revealed Origin Energy, which has one million Victorian customers, is lifting its power charges on their default plans by 14.4 per cent next year — a week after Energy Australia lifted its power price by 14.9 per cent.

The biggest winners from the new money-back scheme, to be announced by Premier Daniel Andrews today, will be government concession card holders who could save between $254 and $720, depending on where they live.

However, AGL has said it will not boost the discounts that concession holders get above the existing 15 per cent.

Premier Daniel Andrews said credits applied to household bills would ’make a real difference for families across Victoria’.

Other customers on standing offers or expired market offers — the least competitive in the industry — will get between $250 and $420.

Mr Andrews said credits applied to household bills would “make a real difference for families across Victoria”.

“This makes things fairer for the one in 10 Victorians who are on costly default energy deals and are paying too much for their power,” he said.

The scheme will see a credit or discount put on bills of customers with Origin, AGL and Energy Australia, and comes after each of the companies met with the Andrews Government about potential market re-regulation.

They will apply to residential customers who effectively have default contracts and who have not engaged with the market to get a better offer.

Energy Minister Lily D’Ambrosio said the rebates were a ‘major win’, but more could be done.

A recent St Vincent de Paul Society report found the difference between default deals and the best market contracts could be several hundred dollars for average families.

Energy Australia said its rebate would save concession customers up to $720 and was a recognition “families in Victoria are hurting from rises in electricity prices”.

AGL said it would apply a 10 per cent discount for 12 months, but it would “not affect, or apply to, our concession customers on standing offers, who already receive a 15 per cent discount on usage”.

Origin said its discount would last two years, and it was also keen to help customers “who have not yet taken advantage of our discounted deals”.

Plumpton resident Zerin Hassan contemplates a power bill. Picture: Ian Currie

The new rebate from energy companies comes after they were savaged by a review of the industry led by former deputy premier John Thwaites.

That review recommended drastic changes to the market, including ditching standing offers and replacing them with a “basic service offer” that was heavily government-regulated.

The Andrews Government will release a response to the Thwaites review shortly. It is set to back recommendations that would force companies to give customers simple information about their bills, and provide fairer contract terms.

Energy Minister Lily D’Ambrosio said the rebates were a “major win”, but more could be done.

“Further measures (are) being considered to make our energy sector fairer for families across the state.”

The new rebate follows a Fair Go for Families campaign by the Sunday Herald Sun highlighting the toll of soaring prices on Victorians.

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