Recent energy rules could blow up electricity bills - Australian Solar Quotes
16/04/2018 | Politics | Leave a commentAEMC, electricity bills, Energy retailers, Greenhouse and Energy Minimum Standards Act
Plans to alert consumers of price changes
The two governments have vowed to compel the Australian Energy Market Commission (AEMC) to formulate new rules that will force energy retailers to alert their customers of any imminent electricity price increases before they happen, hence giving consumers ample time to shop around for better deals.
The Federal government Minister for Energy Josh Frydenberg said the main aim is to drive down electricity bills. This latest move follows rules that were created to ensure customers are duly notified by their electricity retailers when their energy discounts expire.
“Currently, retailers don’t have to inform customers of price changes until their next bill, which can be months after the price change has occurred – meaning customers can be paying more than they thought without being aware of it,” Mr Frydenberg stated.
This is not the first time in the 12 months that the cost of power in New South Wales has been a cause for consumer concern, with some retailers raising prices 20% last year.
Will changes inflate electricity bills?
Unfortunately, many insiders in the industry are skeptical. One of the electrical retailers advised that even though the new announcement is perceived as well-intentioned and aimed at ensuring transparency, many power companies had future price increases already telegraphed via online information and public notices, and the new rules would only create additional costs to bills as companies strive to recoup the notification costs.
“Around four per cent of all households nationally may be particularly vulnerable to increases in electricity prices,” Australian National University Centre for Climate Economics and Policy Associate Professor Hugh Saddler noted.