Statement on Victorian Energy Retail Changes

Electricity retailers stand ready to further support customers facing payment difficulties, according to the peak body for retailers, the Australian Energy Council. 

The AEC’s Chief Executive Louisa Kinnear said it supported the goal of ensuring customers facing financial difficulties are on the most appropriate energy plan to meet their needs. 

“We support the extension of protections for customers on legacy contracts. 

“Retailers have been limited in being able to move customers to different plans because of the need for explicit informed consent. These changes mean they will now be able to automatically switch customers in payment difficulties to plans that better suit them. 

“We always encourage customers to shop around to get the best deals but there are still around 5 per cent of customers who haven’t changed plans and are missing out on potential savings. 

“For customers experiencing payment difficulties help is available by approaching your energy retailer for a confidential discussion. 

“We recognise that not everyone may feel confident about doing that but a confidential conversation with your retailer can help you to understand your options. 

Retailers offer a range of assistance measures on request. If you are concerned that you may not be able to afford to pay your bills as they fall due, contact your retailer as soon as possible. 

“Retailers will work with customers to find the best way to manage debt levels.” 

Commenting on changes to disconnection requirements, Ms Kinnear said disconnections remain a last resort for retailers and only occur after all other measures have been exhausted. With the new higher threshold, there will be an increased need for all stakeholders to encourage early engagement to ensure customers do not accrue higher levels of debt. 

The AEC has also called for the Victorian Government to review the adequacy of its emergency relief and other support measures in light of the higher disconnection threshold.  

About the Australian Energy Council 

The Australian Energy Council is the peak industry body for electricity and downstream natural gas businesses operating in the competitive wholesale and retail energy markets. AEC members generate and sell energy to 10 million homes and businesses and are major investors in renewable energy generation. The AEC supports reaching net-zero by 2050 as well as a 55 per cent emissions reduction target by 2035 and is committed to delivering the energy transition for the benefit of consumers.