Energy retailers' marketing tactics

Energy retailers are resorting to hard-sell tactics to increase market share.
 
Get access to all CHOICE BENEFITS
$1.91/wk
*Billed quarterly
 
 
 
 

03.What CHOICE wants

  • An independent website and call centre with nationwide reach that allows clear, simple and objective comparison of energy providers and plans so consumers can find ones that best suit their circumstances. One such resource is the Australian Energy Regulator’s energymadeeasy.gov.au, which already exists as part of the stalled National Energy Customer Framework, but politicisation of the energy issue and lack of consensus between states means only consumers in the ACT and Tasmania can use this site to compare providers and prices. 
  • Access to standardised price fact sheets to help consumers compare complex energy products. This was planned for under the National Energy Customer Framework. 
  • A national energy savings initiative to help households reduce costs. 
  • A voluntary code of conduct for energy comparison websites that ensures commercial switching sites are truly independent, accurate and comprehensive if advertised as such. CHOICE delivered a super complaint about energy comparison sites in 2011 under a pilot program with NSW Fair Trading. 
  • A resource by which consumers can access their own consumption data to help them to become more energy efficient and encourage genuine competition and product differentiation in energy retailing. CHOICE recently launched Take the Power Back – join the campaign!

One of the first steps in figuring out how to keep your electricity bills under control is making sure you know what kind of contract you're on. 

Standing Offer Contracts

You’re on a standing offer electricity or gas contract if you move to a new address and accept whichever retailer is aligned with the energy distributor in that area. The terms and conditions of these default contracts are determined by state regulators, and prices will be the same in a given network area. The exception is Victoria, where prices are not regulated. 

Market Contracts

In states where you can choose among retailers (every state and territory except NT, Tasmania and parts of WA) you can opt for a market rather than standard offer contract. With market contracts, energy prices as well as terms and conditions vary between retailers. Market contacts generally offer discounted prices and other incentives (such as bonus point programs) as well as different billing and payment options, but can also impose start-up, exit and other fees.

 

 
 

How to comment

Here's your chance to join in the debate. Just click in the comment box and let the CHOICE Community know what you think, or view all of the comments on this article.

Reporting offensive comments

If you see something offensive or something that just shouldn't be there, hit the report button and let us know immediately. View the Terms of use for user comments.

 

Make a Comment