Reforms aim to cut costs

Rising power bills are always a hot topic and it probably comes as no surprise that millions of families are paying more than they need for their electricity.

Part of the problem is lack of transparency. You might have started on a discounted plan that has since expired and you may not have realised you have been switched to a default plan that is more expensive.

But soon that should no longer be the case.

The prime minister, Malcolm Turnbull, met energy retailers in August and they have agreed to contact all customers who are on expired discounts and tell them how much they can save on a better deal.

Other measures that the energy companies have agreed to implement include:

Reporting to the government and Australian Competition

& Consumer Commission (ACCC) what they are doing to get families onto a better deal and how many households remain on expired deals. Developing simple, plain-English fact sheets that provide easy-to-understand comparison rates. Supporting a change to the electricity rules requiring them to inform customers when their discount benefits end and setting out the dollar impact of doing nothing. Ensuring that families and individuals on hardship programs will not lose any benefits or discounts for late payment.

“Too many families are not on the best power deal. That is why today we took further action,” Turnbull said at the time, adding that these measures would help ensure families are not paying more for their power than they should. Make sure you take action, too, and check out sites such as energymadeeasy.gov.au, energywatch.com.au and energybilldoctor.com.au to see if you can find a better deal.