Energy retailers to notify customers of changes electricity and gas discounts

Energy retailers will be required to notify electricity and gas customers when discounts in their contracts are due to change.

Rule changes are a “direct result of the government’s engagement with major energy retailers and would put consumers in a strong, informed position to consider their energy options,” Energy Minister Josh Frydenberg says.

Energy retailers will be required to notify electricity and gas customers when discounts in their contracts are due to change under a Turnbull government push to put downward pressure on household power bills.

The move is an attempt to empower families and small business owners who sign up to

electricity and gas deals which contain apparent bargains like price discounts but are often unaware when these benefits end or change — leaving them worse off.

As of February, retailers will be obliged to send notices to customers including their metering identifier; a statement that any discounts in their contract will change; the date the change will happen and any early termination charges payable under the contract.

It will also refer them to the Australian Energy Regulator’s “price comparator” website, Energy Made Easy, to help them shop around to secure a better deal.

The AER will also publish guidelines in July on more detailed information that retailers will be required to pass on to customers from October, including how much a customer will pay if they stay on the same deal after a discount or benefit ends.

The guidelines are also expected to include advice to customers on how to use the Energy Made Easy website to compare available offers.

Energy Minister Josh Frydenberg said the rule change was a direct result of the government’s engagement with major energy retailers and would put consumers in a “strong, informed position to consider their energy options.”

He said the government had abolished the ability of energy networks to appeal decisions of the AER, secured more gas supplies and directed the competition watchdog to conduct a review of retail electricity prices.

“Taken together, these measures will put downward pressure on electricity and gas prices across the country,” Mr Frydenberg said.

The AEMC issued a statement saying the rule change was expected to “reduce the number of customers remaining on contracts with expired or reduced benefits, or rolling onto ‘standing offers’ which tend to be higher priced.”

“Notices will encourage customers to shop around and look for a better energy deal ... It will also increase consumer engagement and improve retail competition,” it said. “The AEMC has extended the proposed rule’s coverage so that it also applies to gas retailers and to all benefits, not just financial benefits.”

The request for a rule change was submitted following the Australian Government’s round table discussions with energy retailers in August.