Making it easier to switch energy providers
Energy users will be handed extra powers to access their personal data and switch to the cheapest deals.
Energy users will be handed extra powers to access their personal data and switch to the cheapest deals, potentially saving up to $1000 for customers in NSW and South Australia.
Josh Frydenberg and Energy Minister Angus Taylor will today announce an extension of the government’s Consumer Data Right to energy services ahead of a similar move in telecommunications.
The mechanism gives customers greater access to personal information and lets them instruct businesses to “provide safe and secure access of their data to trusted third parties”.
The Morrison government has announced consumer reforms in the banking sector after legislation passed earlier this month giving customers the right to seek greater access from banks to secure the best offers.
The Australian Competition and Consumer Commission will today release its position paper on the “data access model for the energy sector”, and recommends the Australian Energy Market Operator establish a gateway to “facilitate consumer’s access to their own energy data”.
The Treasurer said giving consumers more control over data would “support the development of more convenient products and services customised to individuals’ needs” and encourage competition and lower prices.
Government data shows “30 per cent of electricity consumers do not switch due to the effort required and 22 per cent due to lack of information”.
Under the changes, a small business would be up to $7000 better off in South Australia and up to $4500 better off in Victoria.
Mr Frydenberg said consumers should be able to access the full benefits “from their personal data”. He said it was increasingly difficult for Australian households to find deals that best suited their needs, with consumers confronted with “thousands of products on offer across banking, energy and telecommunications services”.
“Australians should be given more power over their own data instead of being left in the dark by banks and energy providers,” Mr Frydenberg said.
Mr Taylor said beefing up consumer rights would help customers get a better deal: “Giving people rights over data will make switching easier and allow consumers to get even better deals.”