Major new reforms are set to make energy plans fairer and ensure more Australians can access better energy deals.
The Australian Energy Market Commission (AEMC) has announced new rules for electricity and gas retailers to better protect consumers. Among them are reforms to help households avoid unexpected price rises. Others will put the onus on retailers to assist people in financial hardship.
The AEMC said the new rules were in response to requests from Australia's energy minsters. They will:
- prevent retailers from increasing prices more than once a year
- ban excessive charges like late-payment fees for all retail contracts
- ensure all consumers are entitled to a fee-free payment method
- prohibit retail fees for vulnerable consumers
- ensure vulnerable Australians are receiving their retailer's best offer
- prevent retailers from charging more than the standing offer price if the customer's initial offer changes or expires. This will protect customers from paying higher prices for their loyalty.
The rules to improve consumer confidence in retail energy plans will come into effect on 1 July 2026. Those that assist hardship customers take effect from 30 December 2026.
The reforms progress the Australian Government's One Click Switch reforms. They are designed to ensure no one pays more than they should.
