The Independent Competition and Regulatory Commission (ICRC) has released a fact sheet to help consumers understand how the Territory’s new Retail Electricity Code will help them find the best deals.
The ICRC said that earlier this month, it released a draft of the new ACT Retail Electricity (Transparency and Comparability) Code which would change the way retailers advertised their electricity plans and told their customers about plans that could save them money.
“This fact sheet explains how the new Code will help you shop around for an electricity plan, and the tools you can use now to find better deals,” the ICRC said.
“The Code will make it simpler and faster for you to compare electricity plans and choose the best plan for you,” it said.
“Many ACT electricity customers have told us that they find it difficult and confusing to compare plans and work out what is the best deal for them.”
The ICRC said that under the Code, retailers would be required to make their advertising and direct communications with customers much clearer, to help customers navigate the market, and find the best deal for their circumstances.
The Commission said retailers would have to compare the annual price of their electricity plans to a reference price; notify customers if they had a cheaper plan available; and inform customers about the Federal Government’s free energy comparison website.
“A reference price is a benchmark or common reference point to help you compare plans from different retailers,” it said.
“Currently, a plan advertised by one retailer with an 11 per cent discount could be more expensive than a plan advertised by another retailer with a five per cent discount; this is because retailers calculate their discounts off different base rates.”
The ICRC said retailers would also be required to calculate their advertised discounts using a common reference price.
The Commission’s four-page fact sheet can be accessed at this PS News link.
