The Australian Energy Market Commission (AEMC) has announced proposed rule changes to improve energy affordability, transparency, and consumer protections. These changes, submitted by Climate Change and Energy Minister Chris Bowen MP, address issues in the National Electricity Market and aim to tackle hidden fees, affordability for vulnerable customers, and market engagement.
Removing Hidden Fees
The AEMC proposes eliminating fees such as account establishment, special meter reads, late payments, and paper billing. These costs would instead be incorporated into tariffs, subject to competitive pressures. Retailers could still charge fees for specific customer-initiated arrangements, provided costs are disclosed upfront. The term “reasonable costs” for certain fees remains undefined, potentially requiring oversight by the Australian Energy Regulator (AER).
Supporting Hardship Customers
To aid financially vulnerable customers, retailers would be required to credit bills if a better offer exists. The credit, reflecting potential savings, would be pro-rated if customers change plans or leave hardship programs. This approach addresses barriers such as time constraints and language difficulties.
Price Stability for Consumers
The AEMC aims to limit price increases during market retail contracts. Options include prohibiting increases for the first 100 days, limiting changes to once annually, or requiring minimum contract durations for fixed-price periods. These measures aim to reduce bill shock and enhance predictability.
Additional Changes
Other proposals include requiring energy plan benefits to last the entire contract duration and removing unreasonable conditional discounts. Retailers would need to adjust pricing strategies and may face increased compliance scrutiny.
Next Steps
Stakeholders are invited to submit feedback by January 16, 2025. The AEMC will then decide whether to adopt or modify these proposals, which aim to create a fairer and more transparent energy market. For more details, visit www.aemc.gov.au.