New rules brought in by the state government will soon force a Victorian energy retailer price freeze for one year to new customers following the sign-up of the customer.
The Victorian Government has directed the state’s Essential Services Commission (ESC) to implement a set of new rules. These new rules will come into effect in July 2019.
They will stop retailers attracting new customers with special discounts, then upping the price within months of entering the contract.
Energy retailer price freeze supports customers
Until now, there has been nothing to force energy retailers to stick to the discount rates they initially offer.
From 1 July 2019, gas and electricity retailers must honour their new contracts for a minimum of 12 months after sign-up. As well as this energy retailer price freeze, they must also:
- Tell customers if they’re on their best energy plan.
- Give at least five days’ warning of bill changes.
- Provide clear and helpful advice about the retailer’s best energy plan before signing up a new customer.
Retailers must tell customers how much they can save by switching to the best plan. This must happen quarterly for electricity and at least every four months for gas.
All prices must also show GST as of 1 July 2019.
Avoid bill shock with your own solar installation
One of the best ways to insure yourself against bill shock is to install a solar battery system.
You can then generate your own electricity while the sun shines and store excess for use later.
The Victorian Government has already set up an ambitious Solar Homes program. This offers 720,000 owner occupiers half-price solar panels or solar hot water systems.
The Andrews Government also has solar batteries in its sights. Half-price solar batteries will be provided to 10,000 households if the government is re-elected on 24 November.
The $40 million battery storage program is part of the Solar Homes program run by Solar Victoria.
Comparison website offers $50 bonus for consumers
In addition to energy retailer price freeze, the Victorian Energy Compare (VEC) website will help people find and compare the best energy packages on the market.
The website offers consumers a $50 one-off bonus for using the site to compare energy plans.
Information is updated daily, and retailers must notify the website within two days of making offers publicly available.
Each offer must also include a ‘price changes’ section. This tells consumers about the process followed when altering rates.
