Power price cap for some customers
Apartment, aged care, and retirement village residents could be among those consumers to benefit from an NSW Government-imposed electricity price cap.
NSA campaign
The National Seniors Australia (NSA) Energy Affordability Campaign aims to cut energy bills for older Australians by:
Banning demand tariffs for retail customers. NSA opposes the use of demand tariffs at the retail level. Demand tariffs charge customers for using high levels of energy during peak times but then applies this across an entire billing period when energy use is not high. This charge will not reduce peak demand and is simply a cost recovery tool. Demand tariffs should not be part of billing as they are confusing and do nothing to reduce peak demand. Read more here.
Getting rid of faux competition in the retail market. Energy is an essential, and government should regulate the sector effectively to control prices rather than pretend that retail competition has any impact on reducing the cost of energy.
Smart meter protections. The move to roll out of smart meters will expose households to electricity tariffs – time of use and demand tariffs – that charge higher prices in peak times. This could result in higher bills for households. Consumer protections must be strengthened. Read more here.
Older people are sick of being asked to shop around for a better deal on electricity. This fake competition does not benefit consumers and simply increases prices.
For those living in apartment and village type complexes, shopping around is not possible.
National Seniors Australia (NSA) is campaigning get rid of fake competition in the retail market.
Energy is an essential and we believe government should regulate the sector effectively to control prices rather than pretend that retail competition has any impact on reducing the cost of energy.
Fairer go for embedded network customers?
So, it is with qualified support we welcome the NSW Government initiative to help reduce energy bills and add protections to ensure customers who are part of an embedded network have a fairer go.
It is estimated more than 95,000 households in the state are on embedded electricity networks – meaning electricity is supplied to multiple premises from a single connection point to the main grid.
They are often found in apartment buildings, aged care and retirement villages, and shopping centres and can provide customers with electricity, gas, hot water, chilled water, or air conditioning.
However, customers in embedded networks can find it hard to shop around for the best electricity deal.
The good news is that in NSW a planned price cap “broadly equivalent to competitive market offers” will be imposed on such networks. The price cap will be set at the median of the lowest offers in the market.
In addition to fairer pricing, there will be new consumer protections including:
Access to free and independent dispute resolution through the NSW Energy and Water Ombudsman
Access to national and NSW energy rebates and payment support programs for customers struggling to pay their energy bills
Providing customers with information about embedded network arrangements before purchasing or leasing a property in an embedded network
Preventing customers from being locked into lengthy energy supply contracts.
NSW Minister for Better Regulation and Fair Trading, Anoulack Chanthivong, says the price cap will help even the price playing field for all customers.
“For too long, people living in apartments, residential land lease communities, and other properties with embedded networks have faced challenges that others don't, including a lack of competitive choice and at times, unclear pricing,” he said.
The government’s plan was informed by the Independent Pricing and Regulatory Tribunal’s (IPART) review into the future of embedded networks in NSW. The State Government supports 36 out of 38 recommendations.
In its submission to the IPART review, Energy Consumer Australia, an independent group that represents residential and small business customers, called for
Any criteria used to assess potential methods for setting maximum prices should prioritise ensuring consumers have access to affordable and reliable energy
The maximum price for electricity should be lower than the Default Market Offer prices.
It’s noted that the NSW Government has committed only to setting the price cap at the median of the lowest offers in the market.
Laws enacting the price cap will be enacted this year, the government said.
You can view the plan here.
Related reading: NSW Government, News.com.au, ECA, NSA
