PM orders Xmas fix for power woes
AUSTRALIA’S electricity fat cats were yesterday hauled in front of Prime Minister Malcolm Turnbull for the second time and told to write and offer two million customers a better deal by Christmas.
“We believe as many as two million Australian families are paying more for electricity than they should be paying,” said Mr Turnbull.
The profit hungry energy retailers were also ordered to stop bamboozling customers with fake discount offers that were actually more expensive.
Energy Minister Josh Frydenberg said: “What we found is that some companies had been producing market offers which were more expensive than standing offers and then providing a discount off that higher base.
“And it’s that level of confusion which is trapping customers in these higher price deals at a higher price.”
But energy experts say the moves are still not enough to counter the massive price gouging by greedy retailers who are overcharging customers by up to $550 each.
Mr Turnbull said the retailers had agreed to write to at least a million customers on standard electricity offers and tell them how they could get a better deal.
“Those letters will be sent out by Christmas,” said Mr Turnbull. Consumers will be directed to the Energy Made Easy website to see how they can swap plans and “save potentially a very large amount of money”.
Three weeks ago the power company fat cats were called into another meeting with the Prime Minister and agreed to write to another million customers on expiring discount offers to inform them they were paying too much and offer better options.
In addition Mr Turnbull said the “retailers are going to investigate and move towards providing bills on a monthly basis, rather than quarterly as it mostly done at the moment”.
Choice campaigns director Erin Turner said the move was a welcome step for the eight out of 10 Australians surveyed this month who said that electricity costs were a concern.
“With price hikes of up to 20 per cent in July in some states, it’s no surprise that Australians are struggling with their energy bills,” she said.
But The Australia Institute’s top energy boffin said the big three energy retailers, AGL, EnergyAustralia and Origin Energy, “will pass the cost of telling people about the savings on to the customers”.
Matthew Warren, from the Australian Energy Council, spoke on behalf of the retailers at the meeting and said the Government’s demands “are tough but we can do them”.