Energy five-day notice: On 27th of September 2018, a new rule was announced by Australian Electricity Market Commission (AEMC) for the energy retailers to inform their customers at least five business days before any rate change occur.
New notice requirement to come into effect from February 2019.
The new notice or rule is designed to reduce the risk of ‘bill shock’ and improve transparency to take effect from 1 February 2019.
These changes will be part of the National Energy Customer Framework (NECF) which applies in the ACT, Tasmania, South Australia, New South Wales, and Queensland. However, this will not be implemented in Victoria due to its own Energy Retail Code.
Fines up to $100,000 per incident for retailers who fail to comply.
The AEMC and Australian Energy Regulator (AER) are jointly recommending the Council of Australian Governments (COAG) Energy Council approves a civil penalty provision to protect Power/Energy customers if retailers fail to notify on time.
Failure to meet the new obligations will result in fines of up to $100,000 per incident.
Energy retailers must provide clear and concise notice for both increases and decreases in electricity prices.
The notice must be sent using the consumer’s preferred form of communication and must include the date of the price change, energy tariffs and charges to apply both before and after the change.
A notification of historical usage and billing data in order to assess the impact of the changes on their bill will also be provided.
This notice will eventually give more time and freedom for customers to shop around for a better deal. Look for yours as early as now, Econnex will help you.