Overhaul of retail energy industry suggested by leading welfare agency

ENERGY retailers would have to put pensioners and concession card holders on their cheapest or near-best ­prices under an idea to tackle crippling electricity and gas costs.

The Brotherhood fears customers who struggle to pay bills on time, have limited internet access or low literacy or numeracy are likely to be locked out of the best offers. Picture: Steve Tanner

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ENERGY retailers would have to put pensioners and concession card holders on their cheapest or near-best ­prices under an idea to tackle crippling electricity and gas costs.

And advertising the total costs per unit of energy for an average household could help people compare deals and save money, a leading welfare agency says.

“Unit prices in supermarkets have provided consumers with a simple way to compare products sold in ­different quantities or weights. Unit ­prices (for energy) would make it much simpler for consumers to compare,” the Brotherhood of St Laurence says.

It fears businesses profiteer from low-income households and other consumers who don’t regularly shop around when contracts lapse, typically after one or two years.

Half of Victorians have not switched their company or plan in the past five years, states a submission to a state government-ordered review of energy retail markets.

“At the end of contract benefit periods, customers who do not switch again will lose any discounts and face the likelihood their terms will deteriorate further,” it warns.

Excessive bills added to energy concession scheme costs that topped $205 million a year. “Further analysis is ­needed to identify the actual contracts of concession households. However, it is reasonable to assume some of these households are on more expensive contracts.

“In such circumstances, the concession essentially acts as an inflated subsidy to the energy retailer,” says the submission. “Given that the Victorian government is footing a proportion of the concession card holders’ bills, it has a responsibility to ensure those bills are not unnecessarily high.”

The submission says other options to consider include:

GOVERNMENT sponsorship of a not-for-profit retailer;

FORCING retailers to publish any contract offered to one or more customers; and

CAPS on fixed retail charges.

The Brotherhood fears customers who struggle to pay bills on time, have limited internet access or low literacy or numeracy are likely to be locked out of the best offers.

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@KarenCollierHS