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    Minister for Energy and Water Supply
    The Honourable Mark McArdle

    LNP to stop early termination fees on electricity contracts

    Minister for Energy and Water Supply
    The Honourable Mark McArdle

    Monday, July 09, 2012

    LNP to stop early termination fees on electricity contracts

    The Newman Government will make legislative changes to protect electricity customers from being hit by early termination fees if they choose to change companies.

    Minister for Energy and Water Supply Mark McArdle said Queenslanders have the right to be able to shop around and change their providers without fearing hefty contract break fees.

    “We’re serious about cutting the cost of living for Queenslanders,” Mr McArdle said.

    “Householders should be able to find the best possible deal and this change will ensure they won’t be penalised for exercising their right to shop around.

    “Some companies break fee charges of around $70 is enough to put many customers off looking for better deals.”

    The Electricity Amendment Bill will make changes to the Electricity Act (1994) including prohibiting early termination fees for small and residential customers where they are notified of an increase in charges above the regulated price.

    The amendments are expected to go through Parliament this week.

    In addition to the legislative changes the Queensland Government will be altering subsidy arrangements with respect to the Tariff 11 price freeze to ensure retailers who charge Tariff 11 customers above the notified price do not receive a subsidy from the Government for those customers.

    Mr McArdle said changes to the Act are a great outcome for competitiveness within the electricity market.

    “The Government set aside $60 million to subsidise electricity providers in order to freeze Tariff 11 prices and improve the cost of living,” Mr McArdle said.

    “We make no apologies for withholding payments to companies that have increased their prices above the notified prices. It’s just not on.”

    [ENDS] 9 July 2012

    Contact: Minister McArdle’s Office 3896 3690