Unfair Home Energy Deals Scrapped
According to The Age, “standing offers” in the Victorian energy market will soon be a thing of the past. The Andrews government has accused energy providers of ripping off thousands of families, and wants it stopped. Customers can now expect to have cheaper energy deals in Victoria, even if they don’t switch providers. Mr Andrews hopes this will be a step towards reducing the average energy bill for Victorians.
Currently, energy customers can choose a “standing offer”, which is based on the maximum energy cost allowed by government regulators. They can also choose a “market offer”, which comes with heaps of bonuses and discounted rates. These standing offers have been criticised because loyal customers are missing out on discounts.
The Australian Competition and Consumer Commission released a report in 2018, finding standing offers were created with good intentions but the system was no longer working. These offers are now causing financial harm to households. With new laws, loyal customers can now expect cheap energy deals in Victoria when compared to their current standing offers.
Who Will Save with Cheap Energy Deals in Victoria?
Premier Daniel Andrews has said has energy companies have been ripping off their loyal customers by $200 to $500 per year with standing offers. By getting rid of these offers in favour of a fairer default offer, customers will benefit.
The Australian Energy Market Commission suggests Victorian customers can pay up to $652 too much per year. That’s when comparing the median standing offers to the minimum market offers for Victoria’s cheaper electricity companies.
Victorian Energy Minister Lily D’Ambrosio has said that around 167,000 households will benefit on July 1. Customers on standing offers will be switched to the new default offer. Current customers on market offers can also contact their provider and ask to switch if the default offer is more appealing.
How Else Can You Get Cheap Energy Deals in Victoria?
The proposed default offers look set to give thousands of Victorian families cheap energy deals. Billy Sumo thinks this an awesome result for Aussies! But why stop there? We think you can always do better, so let Billy find you an even better deal!