Minister to stamp out sneaky power pricing tactics

Published Saturday, 19 October, 2013 at 07:00 AM

Minister for Energy and Water Supply
The Honourable Mark McArdle

The Newman Government has taken urgent action in response to reports that electricity retailers are failing to notify customers about the expiry of discounts on their contracts.

Minister for Energy Mark McArdle said he had requested the Queensland Competition Authority (QCA) amend the Electricity Industry Code to require retailers to inform customers receiving a fixed term benefit when it is nearing expiration.

Under the Electricity Act 1994, only the QCA can make amendments to the Code.

“This will require retailers to advise electricity customers when their negotiated contract and any fixed benefit are due to expire,” Mr McArdle said.

“Recent reports of electricity consumers being unaware that they’ve stopped receiving discounts from their retailer are concerning and we have taken immediate action to put a stop to this.

“The issue was first brought to my attention late last week by the Energy and Water Ombudsman. He became aware that electricity retailers have been offering plans with benefits such as a discount for a fixed period to customers who are on open ended negotiated contracts.

“The Electricity Industry Code currently requires retailers to alert customers 20 to 40 days ahead of the pending expiry of a negotiated contract, but not of a looming end of a fixed benefit under that very contract.

“As a result, customers may not discover their discount has expired until they receive their next bill, which may be some months after expiry of the plan.  

“This has the potential to cost everyday Queenslanders hundreds of dollars per year. Queenslanders are fed up with retailers using these kinds of tactics and they deserve better treatment.

“I have asked the QCA to ensure retailers obtain the explicit informed consent of customers when any changes are made to their contracts, including extending or adding new fixed benefits or plans, be they for discounts or price variations.

“While I am disappointed this issue has occurred at all, the early identification by the Energy and Water Ombudsman Queensland is positive and shows the system that we have in place does work to protect Queensland consumers.”

Further information about protections for Queensland electricity consumers is available at www.dews.qld.gov.au or by phoning 13 QGOV (7468).

[ENDS] 19 October 2013

Media Contact: Anthony Jones 0419 774 836