Power bills to list cheaper energy options

ENERGY retailers will be forced to publish their best deals in dollar terms on household bills under sweeping changes that will make it easier for families to save money.

ENERGY retailers will be forced to publish their best deals in dollar terms on household bills under sweeping changes that will make it easier for families to save money.

The Andrews Government will today reveal details of its interim response to a sweeping review of the electricity and gas retail markets carried out last year.

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The requirement to publish comparative deals would see energy giants having to tell customers how much their best offer could save them.

For example, if a family received a household bill of $160, if their gas or electricity retailer had a tariff that would cost the same family $150, it would have to notify them on their bill.

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The energy retail review found the market confusing and ‘the prices Victorian consumers are paying for electricity are unusually high’.

And for the first time, the Essential Services Commission will be asked to monitor competitiveness in the industry.

Nine of 11 recommendations from last year’s review, which was led by former deputy premier John Thwaites, have been endorsed by the government.

Some of the recommendations ­include that ­retailers fix prices for 12 months, encourage more smart meter use, and expanding the power of the energy ombudsman.

The two most complicated and controversial proposals — for a “no frills” basic service offer and dumping expensive standing offers — are still being considered. But the ESC will begin work on creating a benchmark “reference price” for the industry, which could pave the way to phasing out standing offers. Standing offers are a legal requirement for energy retailers, but are mostly relics of industry privatisation and are set at exorbitant prices.

Energy Minister Lily D’Ambrosio.

Last year the Sunday Herald Sun revealed that major retailers would offer discounts worth up to $720 to more than 280,000 standing offer customers.

Energy Minister Lily D’Ambrosio said further analysis was needed on the two most complex recommendations, but that other changes could be done relatively quickly.

“These changes will boost transparency and support hardworking families and businesses,” she said.

“We know Victorian families are struggling with increasing energy prices — that’s why we’re helping more Victorians switch to a better offer.”

The energy retail review found that the market was confusing and “the prices Victorian consumers are paying for electricity are unusually high”.

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