Energy prices stable and disconnections fall as market gets less complex
29 November 2019
The state’s independent economic regulator says there are signs the Victorian energy market is getting easier to navigate with retailers offering simpler energy deals with fewer conditions.
The Essential Services Commission says its annual market report for 2018–19 also shows prices have stabilised and disconnections are at their lowest level in nearly a decade.
Commission chairperson Kate Symons says there are pleasing signs the sector is responding to calls for more transparency and accountability.
“Even before new rules came into effect on 1 July, there were signs with retailers offering fewer conditional discounted offers.
Despite this, the average price of discounted offers, when conditions were met, was unchanged and the average cost of not meeting discounts fell by 30 per cent,” she said.
Key findings:
An average household* paid $1,298 in 2017–18 and $1,284 in 2018–19 (for electricity).
The average cost of not meeting electricity discounts fell from $268 to $188.
Disconnections are at their lowest since 2011–12 for electricity and 2009–10 for gas, falling 34 per cent compared to 2017–18.
The Victorian energy market is changing with 23 new licences issued in 2018–19 including 12 new generation licences (5 solar farms, 6 wind farms and one landfill gas generator).
Ms Symons says the industry is also taking notice of the regulator’s new record on enforcement.
“In 2018–19 we issued $390,000 in penalty notices to energy retailers and distributors for failing to maintain customer protections,” she said.
The commission has also released a new reporting guideline which sets out the information energy businesses must provide on their performance and compliance with the energy rules.
