One million Australians paying more for electricity
MORE than a million Australian households are still paying the highest rates for electricity, which can be almost 30 per cent more than cheaper plans.
MALCOLM Turnbull has ordered energy bosses to a second meeting after an audit revealed more than a million households are still paying the highest rates for electricity.
The prime minister says the number paying more than they need could be even higher because they are not on a suitable plan or their discounted offer has expired and they haven’t been told.
“What we are securing is (the companies’) commitment to make sure their customers know whether they are on the right plan,” Mr Turnbull told FOX FM this morning.
“I want to make sure that as far as we can manage it no Australian is paying more than they need to for electricity.” Mr Turnbull says retailers have already committed to telling customers when their plans are coming to an end.
That will be reaffirmed at a meeting in Sydney on Wednesday, the second in three weeks.
Mr Turnbull says he is already aware of reports of people being offered 25 to 27 per cent discounts.
According to The Australian, an Australian Competition and Consumer Commission audit provided to the government, estimated about one million households, or more than 10 per cent of all dwellings, were locked into the highest electricity rates, which were often up to 27 per cent more than the average cheaper plans.
It comes after a report from Australian Energy Market Commission found some households could save a whopping $507 a year on electricity (38 per cent) if they shopped around, but up to 50 per cent of households didn’t do this. Gas savings could add up to 30 per cent or $285 a year.
Energy companies were first summoned to Canberra for a meeting on August 9 so Mr Turnbull could “eyeball” them about their charges.
In a letter sent to seven retail electricity chief executives, as well as the Australia Energy Council, the Prime Minister said the companies needed to be more transparent about fees.
After the meeting retailers agreed to notify customers when their discount power plans were about to expire and to provide estimates of how much extra they would be paying.
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