Fine print in contracts costing energy customers hundreds

THIS simple mistake could push up your electricity and gas costs by hundreds of dollars. Here’s how to reduce your chance of bill shock.

ENERGY retailers are ripping hundreds of dollars from customers who don’t meet contract conditions such as paying on time, adding to huge bill shock.

The cost of forgetting or misunderstanding fine print has dramatically blown out to as much as an average $500 annually for combined electricity and gas bills, a report has found.

Victoria’s energy regulator has warned the dual impact of rising prices and bill shock from not meeting discount terms leaves many customers battling to pay.

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Further industry-wide price increases will hit from January, with EnergyAustralia the first to foreshadow 14.9 per cent electricity and 13.5 per cent gas bill hikes.

Finding the best electricity and gas price offers has become increasingly confusing. Picture: iStock

“There will be a lot of customers in a situation where they are going to struggle ... We are very concerned about that,” Essential Services Commission chair Ron Ben-David said.

The ESC’s Victorian Energy Market Report 2016-17 reveals:

A RECORD 80,000 customers took part in hardship programs. But their debt had already escalated to an average $1564 before they were helped.

RETAILERS disconnected 50,035 customers because of unpaid bills.

CONSUMERS trying to shop around online were typically overwhelmed with 230 offers.

Dr Ben-David said the deregulated market had become increasingly complicated, confusing, and riddled with “largely meaningless” discount advertising.

“It is possible to find offers with a 10 per cent discount that provide cheaper energy than other offers with discounts of over 30 per cent,” the report notes.

Victorians are bracing for another round of price rises in January. Picture: iStock

He added: “The market is becoming harder and harder to navigate and the consequences of getting it wrong are getting worse and worse for customers.

“You shouldn’t need a degree in quantum physics to buy your electricity or gas.”

Those spending considerable effort monitoring bills and offers benefited from discounts, while other less active customers “could be paying hundreds of dollars over the odds”.

The Andrews Government is considering a raft of reform recommendations from an independent review into the retail market, including a proposed regulated “basic service offer” at a fair and reasonable price.

Australian Energy Council general manager Sarah McNamara warned any re-regulation would reduce competition, and ultimately cause higher prices.

“The key is to shop around and consider what suits you best and determine the ultimate cost you are likely to pay — which is where comparison websites can help,” she said.

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@KarenCollierHS