The Australian Competition and Consumer Commission (ACCC) has published a new guide for energy retailers in NSW, setting out their obligations under a new Electricity Retail Code that comes into effect on 1 July this year.
The ACCC guide details how retailers in NSW, South East Queensland and South Australia should apply the new code, including advertising electricity plans in a way that makes it easier for consumers to compare prices.
ACCC Commissioner, Cristina Cifuentes said the code introduces a cap on ‘standing offer’ prices that are often excessively high.
“The Code also mandates that any prices and discounts must be calculated and advertised against an independently set benchmark known as the ‘reference price’,” Ms Cifuentes said.
“Meaning 20 per cent off with one retailer is also 20 per cent off the same price as another retailer in the same region.”
She said the new rules increase transparency in advertising and put consumers in a stronger position.
“Current discounting practices confuse consumers and large discounts off inflated standing offers do not always result in lower electricity prices for consumers,” she said.
“I urge consumers to review their electricity deals after 1 July and to shop around for the best deal.”
Ms Cifuentes said the ACCC guide explained which retail electricity offers were covered by the code; how the ‘standing offer’ price cap works and; how discounts must be compared to a ‘reference price’.
“The ACCC will enforce the code and monitor compliance,” she said.
The ACCC’s 26-page Guide can be accessed at this PS News link.
