Energy retailers to tell customers when discounts stop

A new rule coming into force today (February 1, 2018) will ensure energy customers get at least 20 days’ advance warning before their energy discounts or benefits run out.

Essential Services Commission Chair Ron Ben-David says some people are paying more than they need to because they aren’t aware their discounts have run out.

“Recently we have seen a trend by energy retailers to move away from fixed term contracts to ongoing energy contracts.  

“This means discounts and other benefits may only apply for a set period of time, like a 20 per cent discount for the first 12 months,” he said.  

Dr Ben-David says we know there are ongoing contracts that have benefits for a set time, but until now energy companies have not had to tell customers when their discounts ended.

“Until now, energy retailers only had to notify customers when a contract ended which might prompt some people to shop around for a better deal.

“With ongoing contracts however this prompt is missing and it is often up to customers to remember when their discounts run out,” he said.

The new rules mean changes for the Energy Retail Code including:

• customers get advance warning of 20 to 40 days before their discounts or benefits change
• customers will be reminded they can compare energy plans by visiting the government’s Victorian Energy Compare website   

The new requirement also brings Victoria into line with the other states following similar rule changes put in place by the Australian Energy Market Commission.