Essential Services Commission draft decision will help thousands in energy hardship
Consumer Action Law Centre strongly supports today’s draft decision from the Essential Services Commission (ESC) on stage one of its reforms to Victoria’s retail energy market, which will help the increasing number of Victorians struggling with energy costs and growing debt.
“Today’s draft decision proposes significant improvements to protections for Victorian energy consumers,” said Consumer Action Law Centre CEO, Stephanie Tonkin. “These proposed reforms will save millions of dollars in energy bills for thousands of Victorians.”
Ms Tonkin said the proposals if implemented, would provide a deep and lasting impact to a significant number of consumers who are today experiencing ‘invisible hardship’, or living in energy poverty.
The suite of reforms proposed includes obligations for retailers to move customers receiving assistance under the Payment Difficulty Framework onto their cheapest plan; and importantly address the ‘loyalty penalty’ where consumers on expensive contracts more than four years old must be switched to a reasonable price.
Consumer Action Senior Policy Officer Eirene Tsolidis Noyce said these welcome reforms will lead to significant cost-savings for thousands of Victorians and will be a crucial step in addressing unaffordable prices for essential services during the cost-of-living crisis.
“People who call the National Debt Helpline tell us they often forego other expenses in order to meet their electricity costs – one of the proposals is that people experiencing energy poverty are identified and supported to find a more competitive offer and prevented from accruing larger debts,” Ms Tsolidis-Noyce said.
“The ESC’s Draft Decision estimates Victorians could save up to $730 per year on electricity, and up to $1,890 per year on gas bills by requiring retailers to automatically switch consumers in payment difficulty to their best offer. For those stuck on bad deals, the dollar amount is likely to be much higher.
“These reforms will address some longstanding issues in the energy market, making it easier for Victorians to access an affordable energy price” she said.
Read our previous submission: Energy Consumer Reforms Consultation – Consumer Action Law Centre
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Media contact: Mark Pearce mark@consumeraction.org.au Tel: 0413 299 567
