Competition is starting to have an impact on ACT energy prices, with a greater range of market offers available to households in the ACT, according to the new 2015-16 Australian Energy Regulator (AER) retail performance report.[1]
There are now three active retailers in the market leading to a 3 per cent decline in the market share held by ActewAGL over the year to 30 June 2016.
Despite the fact a household in Canberra switching from the median standing offer to the lowest market offer could save up to $184 (electricity) and $207 (gas), switching rates remain low in the ACT.
AER Chair Paula Conboy said energy bills remain a big expense for many people with low income ACT households spending on around 3 per cent of their disposable income on electricity bills and 4 per cent on gas bills this year.
“With relatively high gas consumption – especially in the cold winter months – ACT customers have the highest rate of gas debt in the nation, with almost 8 per cent of households repaying a gas debt at 30 June 2016, but less than 1 per cent were receiving assistance from a retailers’ hardship program to manage their gas bills,” Ms Conboy said.
“Just over 3 per cent of ACT households had an electricity debt at 30 June 2016, with the average debt the highest nationally. But the ACT has the lowest rate of customers participating or completing electricity hardship programs, which provide the highest level of support for customers.
“This large gap between those with debt and those accessing assistance, suggests more could be done to assist customers who may benefit from payment plans designed to manage debt,” Ms Conboy said.
“We encourage customers who are struggling to pay their energy bills to contact their energy retailer early and ask for help to avoid being disconnected,” she added.
The AER has developed a new Sustainable Payment Plan Framework to provide further protection for vulnerable consumers. All retailers are being encouraged to sign up to the voluntary Framework that sets standards for retailers to meet when offering payment plans to customers.
The Framework is effective from 22 November among those retailers that have signed up, including Origin Energy and EnergyAustralia.
Ms Conboy also said customers can shop around for a better energy offer using the AER’s Energy Made Easy website which is a simple, independent and free tool to help consumers compare all electricity and gas offers in their area.
The AER has also released its annual retail compliance report for 2015-16. ActewAGL was among nine energy businesses to be fined by the AER during the year for breaches of the National Energy Retail Law, paying $20,000 in penalties for failing to provide the required information to its life support customers.
“Breaches of life support obligations are potentially catastrophic and have been the focus of campaigns to increase community awareness and improve compliance,” she said.
“Results are being seen in improved network systems and processes to safeguard against potential breaches as they continue to work towards improved compliance. The campaign continues in 2016-17.”
About the AER
The Australian Energy Regulator regulates energy markets and networks under national legislation and rules in eastern and southern Australia, as well as networks in the Northern Territory. Its functions include:
- monitoring wholesale electricity and gas markets to ensure energy businesses comply with the legislation and rules, and taking enforcement action where necessary;
- setting the amount of revenue that network businesses can recover from customers for using networks (electricity poles and wires and gas pipelines) that transport energy;
- regulating retail energy markets in Queensland, New South Wales, South Australia, Tasmania (electricity only), and the ACT;
- operating the Energy Made Easy website, which provides a retail price comparator and other information for energy consumers;
- publishing information on energy markets, including the annual State of the energy market report, to assist participants and the wider community.
[1] These reports cover jurisdictions that have commenced the National Energy Retail Law. This includes Tasmania (electricity only) and the Australian Capital Territory from 1 July 2012, South Australia from 1 February 2013, New South Wales from 1 July 2014 and Queensland from 1 July 2015.