With rising energy bills contributing to cost of living pressures for Victorians, the Essential Services Commission is closely monitoring the energy sector’s compliance with the strong consumer protections to which Victorian energy consumers are entitled.
Where the commission sees non-compliance with the rules, it will not hesitate to take strong action. In this report the commission highlights the recent payment of more than $180,000 in penalty notices by Mojo Power East Pty Ltd and QEnergy Ltd for allegedly charging relevant customers higher prices than the Victorian Default Offer. This action emphasises the right of every Victorian energy consumer to be billed accurately.
Further, Alinta Energy paid more than $380,000 in penalty notices for an alleged failure to provide adequate support for customers experiencing payment difficulty. It was alleged that Alinta Energy required four customers to speak to a financial counsellor before it provided assistance. This matter demonstrates that placing barriers in front of customers seeking payment assistance is unacceptable.
The commission also demonstrated that it is using the full range of our tools to deter wrongful conduct by accepting a court enforceable undertaking from Momentum Energy Pty Ltd in relation to allegations it unlawfully disconnected electricity to the home of a family violence victim-survivor experiencing financial difficulties.
Our report also provides the latest data on consumers entering payment assistance. In this climate of increasing costs of living we note that there is an increase in customers getting tailored assistance to support them with their bills. The average number of customers accessing assistance each month in 2022–23 has increased by 10 per cent for gas and three per cent for electricity, compared to the monthly average in 2021–22.
As the commission continues to closely monitor disconnection trends and engage directly with retailers regarding their disconnection processes, it encourages customers experiencing payment difficulties to engage with their retailers and for retailers to work with their customers to help manage their energy debt.
After a turbulent period of record high prices in the wholesale electricity and gas markets in 2022 and the exit of several energy retailers from the market, the commission is increasing the scrutiny of electricity and gas retail licence applications in Victoria. These measures are intended to ensure that new retailers entering the Victorian market are sufficiently resilient to withstand wholesale market volatility.
The record high wholesale electricity prices have also had an impact on the commission’s draft decision for the 2023–24 Victorian Default Offer, resulting in higher prices than in the 2022–23 Victorian Default Offer. The commission is seeking feedback on our draft decision by 11 April with the final decision to be made by 24 May 2023.
To protect the long-term interests of Victorian energy consumers, the commission is closely monitoring energy businesses to ensure they follow the energy rules by providing Victorians with the assistance they are entitled to. If you are unsure of your rights as a Victorian energy consumer, we encourage you to contact your retailer or visit the commission’s website.
