How power companies will be forced to help Victorians save money on their bills

GAME changing new reforms will help you save money on electricity and all you will need to do is look at your bill. See what the reforms will look like.

EXCLUSIVE: ENERGY companies will be forced to tell Victorian customers how much money they could save by shifting to a better deal, under new rules.

The “game changing” reforms mean electricity and gas giants would have to clearly display the information on a customer’s bill in dollar terms, based on the previous 12 months’ metering data.

But companies would only be obliged to confess savings available by switching to one of their own plans, meaning households will still be encouraged to shop around.

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The new Essential Services Commission (ESC) rules, which will begin on July 1, are aimed at reducing families’ rising bills and at promoting honesty in an increasingly confusing market.

New rules will also mean:

ENERGY companies must give customers five days’ warning of price increases;

SAVINGS displayed on bills must be based on generally available market deals; and

ALL prices and charges must include GST.

A sample power bill with the savings confession circled at the top left. Picture: Supplied

ESC chair Dr Ron Ben-David said the plan, based on recommendations from an independent review of electricity and gas markets in Victoria, would tackle “tricky contracts and sneaky price increases”.

“The overarching objective here is to make sure customers are on the retailer’s very best offer,” Dr Ben-David said.

He said the savings available would take into account all discounts and bonuses companies use to entice customers, in a further bid to reduce confusion and shift the retail sector from a “sales culture to a consumer culture”.

Research showed 85 per cent of people prompted by information on possible bill savings contacted their retailer to discuss better plans.

Under the changes, retailers’ customer help lines must also provide clear advice about new energy deals, with a dollar term presented rather than percentages or discount-contingent prices.

“People will save money … retailers won’t want to be ‘fessing up to say they have been ripping off their customers,” Dr Ben-David said.

If 12 months’ data is not available for the price savings, companies can use a “best estimate” to crunch the numbers.

Disability support pensioner Michael McGrath and wife Geraldine recently explained how electricity prices are putting ridiculous pressure on people relying on modest incomes. Picture: Mark Stewart

They must include a message on bills at least every three months saying the name of the plan that would save customers money, compared to the name of the plan they are currently on.

If customers are on the best available plan that company offers, it must provide a reference to the government’s Victorian Energy Compare website.

This addresses concerns raised during consultation that people could stay in the bubble of one retailer rather than explore other options.

The rule changes can be revealed as state political parties battle over cost of living pressures ahead of the November 24 election.

The Herald Sun recently revealed competing power price promises from Premier Daniel Andrews and Opposition Leader Matthew Guy.

Mr Andrews wants to scrap the current state default tariff and replace it with a lower price, while Mr Guy has ­promised to create a new discounted deal for low-income earners.

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