Larger penalties for energy retailers that wrongfully disconnect vulnerable Victorians are to be introduced under new legislation along with a ban on door-to-door sales of energy products.
Minister for Energy, Lily D’Ambrosio said the Energy Legislation Amendment (Energy Fairness) Bill 2021 would protect Victorian households and businesses from aggressive and exploitative practices by energy retailers.
“The legislation will increase penalties up to $1 million for energy retailers who arrange the wrongful disconnection of vulnerable customers,” Ms D’Ambrosio said.
“This is to protect customers in particular who are on payment plans or who require electricity for life support,” she said.
“The Government is also introducing penalties of up to $1 million for gas and electricity licensees who provide false or misleading information to the Essential Services Commission.”
Ms D’Ambrosio said that from 31 December electricity and gas retailers would be banned from using high pressure sales tactics for energy retail contracts, such as door-to-door sales or cold-calling.
The Minister said door-to-door sales would also be banned from 1 September for solar businesses, under the Solar Homes Program.
“The Bill will also ban ‘save’ and ‘win-back’ offers, which often include short-term discounts but end up costing customers more in the long run,” she said.
“This misleading tactic is used by retailers to stifle competition and by banning them, customers will be able to judge the genuine best price in the market – and not just for a limited time,” Ms D’Ambrosio said.
