A growing number of energy customers face confusion and financial disadvantage when trying to switch retailers under the new two-day switching model, according to a report from the Energy & Water Ombudsman NSW (EWON).
The Ombudsman, Janine Young said the report Challenges in the new world of switching energy providers highlighted the unexpected consequences emerging from the two-day switching process for transferring energy providers which came into effect in 2021.
Ms Young said the change enabled customers to switch providers within as little as two business days, instead of having to use the next scheduled meter read as the transfer date.
“Customers contacting EWON are confused, unhappy with unexpected bills they don’t understand and frustrated that the process of changing provider wasn’t clearly explained to them by their new retailer,” Ms Young said.
“We are highlighting these emerging transfer issues now before they undermine consumer trust and engagement – the very things two-day switching was designed to increase.”
She said EWON still strongly supported the rule change however, COVID-19, recent economic pressures, energy price volatility and increased debt had created a very different environment for the rules to operate in.
“Cost of living pressures mean customers are now looking to reduce costs wherever possible – switching retailers for a better deal has never been more urgent, so switching arrangements need to be aligned with this,” the Ombudsman said.
“Retailers have the flexibility to choose how customers transfer to them, based on the circumstances of each customer,” she said.
“Some retailers are offering their customers a choice of when to switch, and are providing them with easy-to-understand switching information, ensuring a smooth and effective transfer process for customers.”
Ms Young said her Office was developing a stakeholder engagement plan to engage with and leverage industry knowledge to address the issues.
She urged retailers and regulators to come together to improve the consumer experience while maintaining consumer protections.
EWON’s report can be viewed online at this PS New link.
