Good news for Victorians – two new regulations came into effect on October 1st 2021, that make it easier to save money on your energy bills. The changes are the latest of many, made after a retail energy pricing inquiry by the ACCC three years ago, into affordability and trust issues within the electricity market.
Read on to see how you can make the most of these new rules:
New Regulation 1: The 48-hour switch
When you request to switch to a new energy plan, energy retailers must make sure the switch occurs within 48 hours.
Why we needed it:
Before this regulation came into effect, consumers would often have to wait until their next meter reading before their retailer switched them to their new plan. This could be up to ten days away for those with a smart meter, and up to three months for those without. For anyone escaping an overpriced plan, that could mean a lot of potential savings wasted.
What this means for you:
In Victoria, pretty much every household has a smart meter so the wait to switch has been less of a problem here than in other states. Still, this new reg means you can now start taking advantage of better rates much sooner after switching, meaning more savings!
New Regulation 2: No more follow-up sales calls
After you switch plans, your current retailer is no longer allowed to immediately contact you and use sales tactics to win you back.
Why we needed it:
When retailers had up to 3 months before fulfilling a consumer’s request to be switched, this left a lot of free time for them to try and ‘save’ the customer through emails and phone calls. The routine move would be to match or give a better offer, often with short-term discounts or ‘credits’ to persuade customers not to leave. Without a fair side-by-side comparison with the market alternatives, retailers could easily stifle their competition, or worse still, sometimes mislead consumers.
What this means for you:
No more annoying calls? That’s always good news! Now, your efforts to switch to a better plan won’t be thwarted.
But more than this, we’re hoping this new regulation fundamentally changes the way retailers treat their existing customer base. Without being able to rely on the ‘hard-sell’ to intervene and win back exiting customers, retailers will need to focus on keeping you from switching in the first place. We’re hoping this means those sharper deals usually reserved for ‘win-back’ offers will be made more widely available across the board.
Remember your rights!
You can still change your mind
You still have a 10-day cooling off period after switching to a new plan. Even after signing contracts, you can simply call the retailer and tell them you’ve changed your mind.
Lock-in contracts don’t exist.
Switching fees aren’t a thing. A lot of Victorians aren’t aware but there are no penalties for ‘breaking’ a contract and switching to a new retailer at any time.
Regularly reviewing your plan is still important!
The ACCC and energy regulators are constantly working to make it easier for consumers to find the best deals. But it’s still not fool proof. The best way to minimise your costs on electricity and gas bills is to regularly check how your plan measures up against other deals in the market. That’s where we step in! Joulius makes the routine energy review easier. We compare your plan and usage against every other retailer in the entire public market, all in a matter of minutes. Give it a try here.
