Quick to switch – Victorians seek out better offers from energy retailers
30 November 2022
New data from the state energy regulator shows there were close to 90,000 transfers of Victorian homes and small businesses to other electricity retailers in June as the impacts of Australia’s wholesale energy market crisis began to flow through to retail markets and consumer energy bills.
The Essential Services Commission’s 2021-22 Victorian Energy Market Report shows the price of median residential electricity offers increased by two per cent in 2021-22. Prices fell between July 2021 and December 2021 on the back of lower wholesale costs but began climbing from January 2022 to reach an eight per cent increase by September 2022. Median residential gas offers increased by 19 per cent in 2021-22.
Commission chairperson Kate Symons says supporting consumers to navigate the impacts of a volatile energy market is an ongoing focus for the commission.
“This report captures the movements of an energy market under pressure, with consumers increasingly vulnerable to impacts beyond their control – things like the COVID-19 pandemic, climate change events, and global and local energy markets disrupted by the war in Ukraine.
“Our analysis highlights that consumer protections are more important than ever, particularly for Victorians who may be experiencing vulnerability,” Commissioner Symons said.
The report tracks regulatory performance and market activity over the 2021-22 financial year and details the commission’s compliance and enforcement work to uphold consumer protections.
The commission took more enforcement action in 2021-22 than any previous year with $6.485 million paid in penalties by energy companies. These related to alleged breaches involving banned exit fees, wrongful disconnections and failure to notify customers about planned outages.
Commissioner Symons says the commission will use its full suite of regulatory tools to deter future non-compliance and prevent consumer harm.
“We’re also focused on assisting compliance amongst regulated businesses to deliver better outcomes for consumers overall. We have run a proactive compliance program to support and require retailers to meet best offer obligations to inform customers when they have better energy offers available,” she said.
“At the end of 2021–22, approximately 44 per cent of electricity and 62 per cent of gas customers were on their retailer’s best offer. That’s up on the previous year when 27 per cent of electricity and 31 per cent of gas customers were on their retailer’s best deal.”
The commissioner warned Victorians might be missing out on assistance, concessions or grants they are entitled to because they’re not aware of their energy rights or how to reach out for help.
“Retailers must regularly display information on customers’ bills telling them their best offer. But Victorians should also contact their energy retailer regularly to check that they’re on the best deal.
“Another good resource is the free and independent website, Victorian Energy Compare, that helps consumers to find and compare energy offers,” Commissioner Symons added.
Victorians having trouble paying their energy bills are entitled to assistance from their retailer. Commissioner Symons urged Victorians to ask for help early to avoid a debt building up.
“Talk to your energy retailer about payment plans, and what concessions, rebates, utility relief grants might be available. Help is out there, and we want to make sure Victorian energy consumers are getting the assistance they are entitled to.”
