Regulator puts energy industry on notice over consumer protection obligations

The Essential Services Commission has called on industry to put consumers at the centre of the energy system in its latest quarterly report.

The Victorian Energy Market Report released today tracks regulatory performance and market activity over the January – March 2022 quarter, covering customer financial assistance and disconnections, market entries and exits, and compliance and enforcement.

Commission chairperson Kate Symons says the compliance and enforcement focus of this quarter’s report is a timely reminder to energy businesses to ensure they continue to provide consumer protections.

“This current energy crisis has shaken consumer confidence in the reliability and affordability of one of our most essential services,” said Commissioner Symons.

“I have heard troubling stories of Victorians reluctant to heat their homes this winter, for fear of unaffordable bills or energy shortages. We have been told of instances where retailers repeatedly contacted customers, telling them to urgently find new retailers to avoid increases in energy bills. Some of these messages alarmed consumers concerned about their ongoing energy supply.

“This is unacceptable, and as chairperson of Victoria’s Essential Services Commission, I expect everyone in the energy industry to redouble their efforts in putting consumers at the centre of the energy system. I have made it clear to industry participants that their licence to supply an essential service to Victorians is a privilege, and with that privilege comes an obligation to act responsibly.

“The commission is closely monitoring the behaviour of energy businesses and will not hesitate to act by enforcing the strong protections that exist for the benefit of Victorian energy households and small businesses.”

These protections include rules that energy retailers must follow when communicating with customers about what offers are the best for them. When price change notifications from their energy retailer are likely to be received by many Victorians in the coming months, the commission will be closely monitoring compliance with these obligations.

There are also consumer protections in place if an energy retailer were to go out of business, requiring the transfer of customers to other retailers. Consumers will not lose access to, or continuity of gas or electricity supply should such an event occur.

Commissioner Symons says it is important for customers to know their energy consumer rights.

“Victorians should contact their energy retailer regularly to check that they are on the best price. Also available is the Victorian Government’s $250 power saving bonus* payment for households who use the free and independent energy price comparison website, Victorian Energy Compare, to seek out a better price. This comes into effect on 1 July 2022.”

Other ways to keep energy costs down include tracking and adjusting energy usage, and installing energy efficiency lighting, appliances, and rooftop solar panels.

“And if you are having trouble paying your energy bills, you are entitled to assistance from your retailer. Ask for help early. Talk to your energy retailer about payment plans, and what concessions, rebates, utility relief grants might be available, and notify your retailer urgently if you or someone at your premises requires life support equipment,” said Commissioner Symons.

*Please note, the Victorian Government Power Saving Bonus closed on 31 August 2023.