Contract shockers
Fine print blows out bills
ENERGY retailers are ripping hundreds of dollars from customers who don’t meet contract conditions such as paying on time, adding to huge bill shock.
The cost of forgetting or misunderstanding fine print has dramatically blown out to as much as an average $500 annually for combined electricity and gas bills, a report has found.
Victoria’s energy regulator has warned the dual impact of rising prices and bill shock from not meeting discount terms leaves many customers battling to pay.
Further price increases will hit from January, with EnergyAustralia the first to foreshadow 14.9 per cent electricity and 13.5 per cent gas bill hikes.
“There will be a lot of customers in a situation where they are going to struggle ... we are very concerned,” Essential Services Commission chair Ron Ben-David said.
The ESC’s Victorian Energy Market Report 2016-17 reveals: A RECORD 80,000 customers took part in hardship programs. But their debt had already escalated to an average $1564 before they were helped. RETAILERS disconnected 50,035 customers because of unpaid bills. CONSUMERS trying to shop around online were typically overwhelmed with 230 offers.
Dr Ben-David said the deregulated market had become increasingly complicated, confusing, and riddled with “largely meaningless” discount advertising.
“It is possible to find offers with a 10 per cent discount that provide cheaper energy than other offers with discounts of over 30 per cent,” the report notes.
He added: “The market is becoming harder and harder to navigate and the consequences of getting it wrong are getting worse and worse for customers. You shouldn’t need a degree in quantum physics to buy your electricity or gas.”