EWON Energy & Water Ombudsman NSW. Free, fair and independent.

Switching to save money on power bills

A COMMUINITY ANNOUNCEMENT

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Consumers looking to save money on their power bills by switching retailers are urged to proceed carefully.

Clare Petre, Energy & Water Ombudsman NSW, expects energy marketing to increase over the coming months, and warns customers to read the fine print before they agree to switch energy retailers.

Ms Petre says, “Even though retail competition has been around for some years, there is still confusion about energy contracts and it can be difficult for customers to compare what’s on offer.

“Customers have complained that they switched to save money, but that their bills aren’t cheaper. Other customers have been surprised to find their contract allows the retailer to put up the price or vary the conditions at any time. In some cases, a customer’s situation has changed – for example, they move to a new property or install solar panels – and their contract is no longer cost effective.

“If you’re planning to move in a few months, switching may not work out to be cheaper. It may pay to wait until you’re settled at your new address” says Ms Petre. “Everyone’s situation and property is different, and there can be more to consider than just price.”

Ms Petre advises customers to ask questions of the retailer before they agree to switch, including:

• If there’s a discount: How will the discount be applied? Typically a discount isn’t applied to the whole bill, only to the usage part of the bill.
• If you terminate the contract early: Do you still receive your discount? Is there an early termination fee and how much is it?
• If you move house: Do you need to sign a new contract? Do you have to pay any fees?
• If the contract expires: Does the contract automatically roll over? If so, do you go onto a default rate? The default rate can be much more expensive than your contract rate.

Before switching, Ms Petre suggests that customers:

• Visit the free, independent, online price comparison website: www.myenergyoffers.nsw.gov.au
• Ask their current retailer if they will have to pay a fee if they switch to another company.

For general information on energy retailers, customers can phone the Energy Information Line on 1300 136 888.

For complaints about energy or water suppliers, contact EWON.

Media enquiries: Email news@ewon.com.au Phone (02) 8218 5206