Small business gas customers could save thousands according to latest energy update
30 June 2020
Victorian small business customers could save around $2400 a year, if they switched from high default gas contracts to lower market offers, the state energy regulator has found.
The Essential Services Commission’s latest Victorian Energy Market Update has revealed 10,000 small business gas customers are currently on retailers’ default gas offers, which are the highest in the market. This could represent savings of $24 million across the market.
Commission chief executive John Hamill says small business and residential gas standing offers can be up to 24 per cent more expensive than market offers without any discounts.
“This finding shows how important it is to pick up the phone and talk to your energy retailer about their best offer.
“Small businesses could be experiencing bill stress during this challenging period and these potential savings could provide some welcome relief,” he said.
Small business customers are seeking help, with 2,488 electricity and almost 684 gas small business customers are receiving payment assistance from their retailer.
Mr Hamill says there is some good news, with data showing that disconnection levels continue to drop compared to the same periods in previous years.
“Disconnections are down 11 per cent compared to 2018-19 and down 33 per cent compared to 2017-18,” Dr Hamill said.
The Victorian Energy Market Update covers the third quarter of 2019-20 from January to March 2020.
In this period, the commission issued penalty notices to two energy retailers totalling $880,000 and retailers made payments totalling $333,995 to customers who had been wrongfully disconnected.
It also granted two new electricity generation licences and one new gas retail licence.