Due to the recent cost increase of energy prices ranging from 10-20%, the Australian Competition & Consumer Commission (ACCC) is recommending households and small companies to contact their energy firm to see if there are cheaper electricity plans available.
Additionally, the ACCC is advising consumers of their right to use the electricity price safety net, which was created to safeguard consumers during hardships and defines pricing guidelines that limit what businesses can charge on consumer’s plans, also called standing offer contracts.
“We know that many Australians are likely paying more for electricity than they need to because their recently increased rates are higher than the safety net built into standing offer contracts,” ACCC Commissioner Anna Brakey said.
Further, the ACCC warns consumers that energy companies are marketing offers advising of price increases above the safety net, but its key consumers contact energy suppliers to ensure they are not spending more than they must and to keep in mind, that the safeguards are in place to protect them.
“You don’t necessarily need to change energy company to get a better deal: the simplest thing you can do is to contact your existing company and ask how your current plan compares to the regulated standing offer,” Brakey said.
She said energy companies are required to show the percentage difference between any electricity plan it offers and the regulated standing offer, or reference price.
“The Government safety net price for electricity is there to protect you, and you should not be paying more than it,” Brakey said.
