Five-Day Notice Requirement To Take Effect From 1 February 2019
Energy consumers only see price changes after they have received their next bill, which can be up to three months after rates have increased.
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.
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.
The existing state law in Queensland which requires retailers to notify customers ten business days of price changes on market offers will still apply.
The changes will also not apply to customers in Tasmania, regional QLD and in the ACT who are on regulated electricity prices which are set by governments or regulators.
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.