We welcome the Essential Services Commission (ESC)'s decision to pause its review of the Energy Retail Code of Practice (ERCOP) to assess how the ‘Consumer Reform’ Package of rule changes proposed by the Energy and Climate Change Ministerial Council (ECMC) might be implemented in Victoria.
We strongly support these reforms, which will go part way to addressing longstanding market failures. These reforms can help to address problems like acquisition pricing tactics and excessive transaction costs.
Read our submission (PDF, 476.88KB)
Our response to the discussion paper includes a series of recommendations aimed at strengthening protections for consumers and building confidence that the energy system is working in their long-term interests. Our recommendations include that the ESC:
- Obliges an energy retailer to credit the difference between the current plan and the best offer, to any customer receiving tailored assistance, or with significant debt.
- Establishes a robust procedure for retailers on how to define the ‘best offer’.
- Imposes new requirements associated with the best offer message obligations and introduces a ban on acquisition only offers.
