Bid to stop power play

ENERGY retailers will be forced to cut confusing jargon out of power bills and give customers clear summaries of their plans so they can see if they are being ripped off.

The Australian Energy Regulator’s rules, to be in place from August next year, were sparked by research showing 45 per cent of consumers were unable to select the cheapest offer when presented with three bill options.

Retailers will now have to provide standardised information about pricing – and whether they have better offers available – to help households shop around, the Bulletin can reveal.

On Monday, the regulator will also unveil a new strategy to improve how the energy industry deals with vulnerable customers who struggle to pay bills.

It will help retailers identify and support vulnerable customers so fewer are disconnected, with the regulator also looking to review the minimum disconnection threshold, which has been set at debts of at least $300 since 2012.

Regulator chair Clare Savage said the new bill rules were part of a plan to do “whatever we can to make life easier for all consumers, while assisting them to save money where possible”.

“People across Australia lead busy lives and have limited time to understand their energy bills, let alone check if they are on the best plan,” Ms Savage said. “Through our research we heard people want their retailer to tell them about cheaper plans, and for it to be easier to compare their plan with other offers.”

Federal Energy Minister Angus Taylor said it was part of a broader effort to make sure “energy consumers are looked after”.

“While electricity prices have continued to fall and there are good deals out there if you shop around, we know Covid has had an impact and many Australians are doing it tough,” he said.

The front page of power bills will have to include essential information, including the payment amount, the retailer’s contact details, a message about available better offers and a link to the regulator’s bill comparison service. A second section will include a standardised plan summary, a comparison of recent power usage and details of how to get help.

Ms Savage said the industry needed to do a better job of identifying and helping vulnerable customers. Since 2017, the average 90-day debt on bills has soared from $640 to $1000.

“The energy market is rapidly transforming and it is important new products and service design have consumers experiencing vulnerability in mind.”