Latest news with #AustralianEnergyRegulator
The Advertiser
3 days ago
- Business
- The Advertiser
Energy price rule changes to limit unfair bill hikes
Energy retailers will be barred from raising bills more than once a year and will be forced to remove unfair fees for vulnerable customers under new rules announced by the market rule-maker. The move will help reduce the complexity and opacity of the poorly understood electricity system, and prevent customers from being ripped off, Energy Minister Chris Bowen said. The changes announced by the Australian Energy Market Commission include preventing retailers from increasing prices more than once a year, banning excessive fees for late payments, and prohibiting fees for vulnerable customers. Retailers must also ensure vulnerable Australians are receiving their best available plan. The changes are intended to clamp down on retailers who lure customers in with cheap deals, only to move them onto higher cost plans or impose hidden fees and charges. "I'm not going to pretend that they're a silver bullet, but clearly, the situation hasn't been working," Mr Bowen told ABC Radio National on Thursday. "There are many, many Australians, either in hardship or not in hardship, who aren't on their best possible plan. That's not their fault. We need to make it as easy as possible for them to change." Research has found about 40 per cent of Australians don't read their energy bill. More needs to be done to ensure time-poor consumers receive their best offer, Mr Bowen said. But it's only part of a broader reform process to make the energy system simpler and fairer, he said. On Wednesday, Mr Bowen flagged tweaks to so-called Default Market Offer rules in a bid to force energy companies to compete harder for customer dollars and prevent unfair price hikes. The regulations were intended to establish a benchmark price to limit price gouging and put downward pressure on prices through competition between energy companies, but were not working as planned, Mr Bowen told the Australian Energy Week conference in Melbourne. Mr Bowen flagged reforms to the Australian Energy Regulator's price-setting mechanism for NSW, South Australia and Queensland to better align with Victoria's rules. The commission's rule changes will be phased in over the course of next year, with the first tranche coming into effect on July 1 2026 and the remaining changes applying from December 30 2026. Energy retailers will be barred from raising bills more than once a year and will be forced to remove unfair fees for vulnerable customers under new rules announced by the market rule-maker. The move will help reduce the complexity and opacity of the poorly understood electricity system, and prevent customers from being ripped off, Energy Minister Chris Bowen said. The changes announced by the Australian Energy Market Commission include preventing retailers from increasing prices more than once a year, banning excessive fees for late payments, and prohibiting fees for vulnerable customers. Retailers must also ensure vulnerable Australians are receiving their best available plan. The changes are intended to clamp down on retailers who lure customers in with cheap deals, only to move them onto higher cost plans or impose hidden fees and charges. "I'm not going to pretend that they're a silver bullet, but clearly, the situation hasn't been working," Mr Bowen told ABC Radio National on Thursday. "There are many, many Australians, either in hardship or not in hardship, who aren't on their best possible plan. That's not their fault. We need to make it as easy as possible for them to change." Research has found about 40 per cent of Australians don't read their energy bill. More needs to be done to ensure time-poor consumers receive their best offer, Mr Bowen said. But it's only part of a broader reform process to make the energy system simpler and fairer, he said. On Wednesday, Mr Bowen flagged tweaks to so-called Default Market Offer rules in a bid to force energy companies to compete harder for customer dollars and prevent unfair price hikes. The regulations were intended to establish a benchmark price to limit price gouging and put downward pressure on prices through competition between energy companies, but were not working as planned, Mr Bowen told the Australian Energy Week conference in Melbourne. Mr Bowen flagged reforms to the Australian Energy Regulator's price-setting mechanism for NSW, South Australia and Queensland to better align with Victoria's rules. The commission's rule changes will be phased in over the course of next year, with the first tranche coming into effect on July 1 2026 and the remaining changes applying from December 30 2026. Energy retailers will be barred from raising bills more than once a year and will be forced to remove unfair fees for vulnerable customers under new rules announced by the market rule-maker. The move will help reduce the complexity and opacity of the poorly understood electricity system, and prevent customers from being ripped off, Energy Minister Chris Bowen said. The changes announced by the Australian Energy Market Commission include preventing retailers from increasing prices more than once a year, banning excessive fees for late payments, and prohibiting fees for vulnerable customers. Retailers must also ensure vulnerable Australians are receiving their best available plan. The changes are intended to clamp down on retailers who lure customers in with cheap deals, only to move them onto higher cost plans or impose hidden fees and charges. "I'm not going to pretend that they're a silver bullet, but clearly, the situation hasn't been working," Mr Bowen told ABC Radio National on Thursday. "There are many, many Australians, either in hardship or not in hardship, who aren't on their best possible plan. That's not their fault. We need to make it as easy as possible for them to change." Research has found about 40 per cent of Australians don't read their energy bill. More needs to be done to ensure time-poor consumers receive their best offer, Mr Bowen said. But it's only part of a broader reform process to make the energy system simpler and fairer, he said. On Wednesday, Mr Bowen flagged tweaks to so-called Default Market Offer rules in a bid to force energy companies to compete harder for customer dollars and prevent unfair price hikes. The regulations were intended to establish a benchmark price to limit price gouging and put downward pressure on prices through competition between energy companies, but were not working as planned, Mr Bowen told the Australian Energy Week conference in Melbourne. Mr Bowen flagged reforms to the Australian Energy Regulator's price-setting mechanism for NSW, South Australia and Queensland to better align with Victoria's rules. The commission's rule changes will be phased in over the course of next year, with the first tranche coming into effect on July 1 2026 and the remaining changes applying from December 30 2026. Energy retailers will be barred from raising bills more than once a year and will be forced to remove unfair fees for vulnerable customers under new rules announced by the market rule-maker. The move will help reduce the complexity and opacity of the poorly understood electricity system, and prevent customers from being ripped off, Energy Minister Chris Bowen said. The changes announced by the Australian Energy Market Commission include preventing retailers from increasing prices more than once a year, banning excessive fees for late payments, and prohibiting fees for vulnerable customers. Retailers must also ensure vulnerable Australians are receiving their best available plan. The changes are intended to clamp down on retailers who lure customers in with cheap deals, only to move them onto higher cost plans or impose hidden fees and charges. "I'm not going to pretend that they're a silver bullet, but clearly, the situation hasn't been working," Mr Bowen told ABC Radio National on Thursday. "There are many, many Australians, either in hardship or not in hardship, who aren't on their best possible plan. That's not their fault. We need to make it as easy as possible for them to change." Research has found about 40 per cent of Australians don't read their energy bill. More needs to be done to ensure time-poor consumers receive their best offer, Mr Bowen said. But it's only part of a broader reform process to make the energy system simpler and fairer, he said. On Wednesday, Mr Bowen flagged tweaks to so-called Default Market Offer rules in a bid to force energy companies to compete harder for customer dollars and prevent unfair price hikes. The regulations were intended to establish a benchmark price to limit price gouging and put downward pressure on prices through competition between energy companies, but were not working as planned, Mr Bowen told the Australian Energy Week conference in Melbourne. Mr Bowen flagged reforms to the Australian Energy Regulator's price-setting mechanism for NSW, South Australia and Queensland to better align with Victoria's rules. The commission's rule changes will be phased in over the course of next year, with the first tranche coming into effect on July 1 2026 and the remaining changes applying from December 30 2026.
News.com.au
3 days ago
- Business
- News.com.au
‘Could be so much simpler': Energy Minister Chris Bowen announces energy price cap overhaul
Energy Minister Chris Bowen has announced a raft of proposed reforms designed to save Australian households from soaring power prices. Speaking at Australian Energy Week in Melbourne on Wednesday, Mr Bowen said reform to the way the energy price cap mechanism worked outside of Victoria was needed in order to make price caps effective. 'Currently, the independent Australian Energy Regulator (AER) sets the default market offer (DMO) as a benchmark for residential and small business electricity bills in NSW, South East Queensland and South Australia, while here the Victorian default offer is set by the Essential Services Commission,' he said. 'The DMO was intended to act as a benchmark price to stop the worst forms of price gouging while leaving the job of putting downward pressure on prices to competition. 'However, I'll be frank. I don't think it's working that way and reform is needed.' Mr Bowen said the vast majority of bill payers, 'some 80 per cent', could be getting a better deal. 'It's difficult to defend the DMO when the customer is required to do the deal hunting,' he said. 'We know it could be so much simpler.' Mr Bowen announced that in 2026 the federal government would be delivering a 'reformed pricing mechanism' designed 'to get the best deal for consumers and act as the maximum price retailers can charge for standing offers in DMO regions'. 'The reformed pricing mechanism will bring DMO states closer in line with other jurisdictions like here in Victoria, which this year has seen significantly smaller bill increases compared to DMO regions,' he said. The Victorian default offer (VDO) rose by less than 1 per cent in 2024–25, while the DMO varied much more widely; in NSW some residential customers experienced a decrease of about 1 per cent, while in South East Queensland prices increased by about 4 per cent. The announcement has drawn criticism from energy providers who say they're surviving on razor-thin profit margins as it is and the planned overhaul could put small energy providers out of business. One of Australia's biggest energy providers AGL issued a statement in response, saying it would look forward to engaging with the government on the review but 'to reduce energy bills, we need to look at the whole picture'. 'The government and industry are actively working on measures to reduce wholesale electricity costs. At 40 per cent of an average bill, network costs are a big component of bills and are continuing to grow quickly,' the statement read. 'A focus on improving network productivity is essential to keep these costs in check. Retail costs only represent around 10 per cent of an average bill and we need to carefully consider any moves that could lessen competition in the retail market, particularly if smaller retailers were no longer able to operate.'
Perth Now
3 days ago
- Business
- Perth Now
Energy price rule changes to limit unfair bill hikes
Energy retailers will be barred from raising bills more than once a year and will be forced to remove unfair fees for vulnerable customers under new rules announced by the market rule-maker. The move will help reduce the complexity and opacity of the poorly understood electricity system, and prevent customers from being ripped off, Energy Minister Chris Bowen said. The changes announced by the Australian Energy Market Commission include preventing retailers from increasing prices more than once a year, banning excessive fees for late payments, and prohibiting fees for vulnerable customers. Retailers must also ensure vulnerable Australians are receiving their best available plan. The changes are intended to clamp down on retailers who lure customers in with cheap deals, only to move them onto higher cost plans or impose hidden fees and charges. "I'm not going to pretend that they're a silver bullet, but clearly, the situation hasn't been working," Mr Bowen told ABC Radio National on Thursday. "There are many, many Australians, either in hardship or not in hardship, who aren't on their best possible plan. That's not their fault. We need to make it as easy as possible for them to change." Research has found about 40 per cent of Australians don't read their energy bill. More needs to be done to ensure time-poor consumers receive their best offer, Mr Bowen said. But it's only part of a broader reform process to make the energy system simpler and fairer, he said. On Wednesday, Mr Bowen flagged tweaks to so-called Default Market Offer rules in a bid to force energy companies to compete harder for customer dollars and prevent unfair price hikes. The regulations were intended to establish a benchmark price to limit price gouging and put downward pressure on prices through competition between energy companies, but were not working as planned, Mr Bowen told the Australian Energy Week conference in Melbourne. Mr Bowen flagged reforms to the Australian Energy Regulator's price-setting mechanism for NSW, South Australia and Queensland to better align with Victoria's rules. The commission's rule changes will be phased in over the course of next year, with the first tranche coming into effect on July 1 2026 and the remaining changes applying from December 30 2026.
Perth Now
3 days ago
- Business
- Perth Now
‘80 per cent' of Aussies paying too much
Energy Minister Chris Bowen has announced a raft of proposed reforms designed to save Australian households from soaring power prices. Speaking at Australian Energy Week in Melbourne on Wednesday, Mr Bowen said reform to the way the energy price cap mechanism worked outside of Victoria was needed in order to make price caps effective. 'Currently, the independent Australian Energy Regulator (AER) sets the default market offer (DMO) as a benchmark for residential and small business electricity bills in NSW, South East Queensland and South Australia, while here the Victorian default offer is set by the Essential Services Commission,' he said. Energy Minister Chris Bowen has announced his intention to overhaul price cap regulators in 2026. NewsWire / Martin Ollman Credit: NewsWire 'The DMO was intended to act as a benchmark price to stop the worst forms of price gouging while leaving the job of putting downward pressure on prices to competition. 'However, I'll be frank. I don't think it's working that way and reform is needed.' Mr Bowen said the vast majority of bill payers, 'some 80 per cent', could be getting a better deal. 'It's difficult to defend the DMO when the customer is required to do the deal hunting,' he said. 'We know it could be so much simpler.' Mr Bowen announced that in 2026 the federal government would be delivering a 'reformed pricing mechanism' designed 'to get the best deal for consumers and act as the maximum price retailers can charge for standing offers in DMO regions'. 'The reformed pricing mechanism will bring DMO states closer in line with other jurisdictions like here in Victoria, which this year has seen significantly smaller bill increases compared to DMO regions,' he said. The Victorian default offer (VDO) rose by less than 1 per cent in 2024–25, while the DMO varied much more widely; in NSW some residential customers experienced a decrease of about 1 per cent, while in South East Queensland prices increased by about 4 per cent. The announcement has drawn criticism from energy providers who say they're surviving on razor-thin profit margins as it is and the planned overhaul could put small energy providers out of business. AGL says to reduce bills, 'we need to look at the whole picture'. NewsWire /Brendan Beckett Credit: NewsWire One of Australia's biggest energy providers AGL issued a statement in response, saying it would look forward to engaging with the government on the review but 'to reduce energy bills, we need to look at the whole picture'. 'The government and industry are actively working on measures to reduce wholesale electricity costs. At 40 per cent of an average bill, network costs are a big component of bills and are continuing to grow quickly,' the statement read. 'A focus on improving network productivity is essential to keep these costs in check. Retail costs only represent around 10 per cent of an average bill and we need to carefully consider any moves that could lessen competition in the retail market, particularly if smaller retailers were no longer able to operate.'
West Australian
3 days ago
- Business
- West Australian
‘Could be so much simpler': Energy Minister Chris Bowen announces energy price cap overhaul
Energy Minister Chris Bowen has announced a raft of proposed reforms designed to save Australian households from soaring power prices. Speaking at Australian Energy Week in Melbourne on Wednesday, Mr Bowen said reform to the way the energy price cap mechanism worked outside of Victoria was needed in order to make price caps effective. 'Currently, the independent Australian Energy Regulator (AER) sets the default market offer (DMO) as a benchmark for residential and small business electricity bills in NSW, South East Queensland and South Australia, while here the Victorian default offer is set by the Essential Services Commission,' he said. 'The DMO was intended to act as a benchmark price to stop the worst forms of price gouging while leaving the job of putting downward pressure on prices to competition. 'However, I'll be frank. I don't think it's working that way and reform is needed.' Mr Bowen said the vast majority of bill payers, 'some 80 per cent', could be getting a better deal. 'It's difficult to defend the DMO when the customer is required to do the deal hunting,' he said. 'We know it could be so much simpler.' Mr Bowen announced that in 2026 the federal government would be delivering a 'reformed pricing mechanism' designed 'to get the best deal for consumers and act as the maximum price retailers can charge for standing offers in DMO regions'. 'The reformed pricing mechanism will bring DMO states closer in line with other jurisdictions like here in Victoria, which this year has seen significantly smaller bill increases compared to DMO regions,' he said. The Victorian default offer (VDO) rose by less than 1 per cent in 2024–25, while the DMO varied much more widely; in NSW some residential customers experienced a decrease of about 1 per cent, while in South East Queensland prices increased by about 4 per cent. The announcement has drawn criticism from energy providers who say they're surviving on razor-thin profit margins as it is and the planned overhaul could put small energy providers out of business. One of Australia's biggest energy providers AGL issued a statement in response, saying it would look forward to engaging with the government on the review but 'to reduce energy bills, we need to look at the whole picture'. 'The government and industry are actively working on measures to reduce wholesale electricity costs. At 40 per cent of an average bill, network costs are a big component of bills and are continuing to grow quickly,' the statement read. 'A focus on improving network productivity is essential to keep these costs in check. Retail costs only represent around 10 per cent of an average bill and we need to carefully consider any moves that could lessen competition in the retail market, particularly if smaller retailers were no longer able to operate.'
