Changes enshrine energy consumer protection

Legislation passed in State Parliament today will lead to better delivery of energy services and strong consumer protection laws for power customers.

Mines and Energy Minister Geoff Wilson said the new legislation was a key part of the State Government’s reform of the energy market.

The Electricity and Other Legislation Amendment Act 2006 amends the Electricity Act 1994 and the Gas Supply Act 2003 and provides a better retail market and a strong framework to protect gas and electricity customers in Queensland.

“When the retail energy market is opened up to competition in 1 July next year, this legislation will provide the rules of the game for customers and suppliers.

“They will enable electricity customers to move to a market contract or to stay on the uniform tariff after 1 July next year if they choose. If they choose to leave a market contract, residential and small business customers can revert to the uniform tariff once their contract with their energy retailer ends.

“This will encourage competition. Customers will be more inclined to take up market contracts after 1 July if they know they have the safety net of reverting to the uniform tariff.

“A new Electricity Industry Code will regulate the marketing behaviour of retailers and set minimum terms and conditions for standard retail contracts, further strengthening consumer protection.”

Highlights include:

• Customers connected to the national electricity grid can choose their electricity retailer, making it easier to access services that best suit their needs
• A 10-day cooling-off period on market contracts, which starts on the same day as full retail competition even if the contract is signed earlier
• Changes to how the uniform tariff is calculated, with tariffs rising or falling in accordance with an electricity cost index instead of the consumer price index which goes up every year
• Deregulation of gas retail prices, and also giving the Minister for Mines and Energy the ability to set prices if competition in the market is not effective
• Retailers can offer both electricity and gas supply to customers on a single bill, which will encourage product innovation and better value for customers.

Mr Wilson said the changes would give customers more confidence in the market.

“Queensland has one of the lowest average wholesale electricity prices in the National Electricity Market, and economic benefits are expected to flow to the state’s domestic and small business customers in a more competitive retail market.

“This is a good news story for Queensland. We’re delivering competitive and innovative energy services that will attract investment in our energy sector.

“A growing gas market will help reduce our impact on the global climate,” Mr Wilson said.

“The State Government is making it a win-win because the legislation provides industry with clear and fair regulatory arrangements.

“These changes are about delivering power to the people of Queensland,” Mr Wilson said.

Media Inquiries: Ellen McIntyre 3225 1819