Electricity tariffs

Customers are confused by Time of Use and demand tariffs 

Starting 1 July 2024, the structure of network tariffs changed in line with the new five-year regulatory period for electricity networks. Developments included expanding demand tariff options and introducing a new (initially opt in) export charge or ‘two-way’ tariffs.

In response to the tariff changes, we are seeing new themes in complaints to EWON including customers expressing uncertainty about:

• varying and confusing terminology used in bills and offers 
• limits to the availability of flat tariffs, which many customers prefer 
• confusion around how cost-reflective tariffs like Time of Use and demand tariffs work
• how network tariffs relate to retail market plans.

To help educate consumers, EWON published a new factsheet called What is my electricity tariff? The factsheet contains information on what tariffs are and how they are structured. 

At the end of November 2024, the Australian Energy Market Commission (AEMC) is expected to publish the final determination in its review of options to accelerate the smart meter rollout. This is likely to include measures that will impact electricity tariffs, such as requiring retailers to:

• obtain explicit informed consent for a three-year period following a meter exchange before the customer is changed to a cost-reflective tariff
• provide written notice 30 business days before a meter exchange with detailed information about the expected tariff change.

The two case studies below demonstrate the type of complaints that led us to develop the factsheet. Customers needed help understanding flat network tariff availability and how network tariffs relate to a retailer’s market plan. The outcomes for the customers differed depending on whether the retailer had made a business decision to offer a flat price to a customer, even though the distributor had assigned the customer a cost-reflective (i.e. not flat) network tariff.  

Case studies

 Retailer gives customer wrong information

The customer researched retailers online to find a plan based on a flat tariff. When he contacted the retailer, he was told he would have to sign up to a plan based on a Time of Use tariff first, but could later switch to a flat price plan once he was their customer. After he had transferred to the retailer, he called them to change to the flat price plan. The retailer advised that it had previously provided incorrect information. EWON provided general information and referred the matter to a senior team at the retailer in the first instance.   

The customer told EWON that the retailer explained it provided incorrect information as it does not have a flat price plan open to new customers, and only has information about the plan on its website for existing customers. The retailer offered to transfer his account back to his previous retailer and give him a credit of $50. The customer told EWON he had decided to remain with the retailer on the Time of Use price plan and accepted the credit of $50. 

 Retailer continues flat price plan after meter exchange

The customer had a smart meter installed in June 2024 and was notified he would be changed to a Time of Use plan. However, in previous discussions and email exchanges with his retailer they had agreed he would continue to be billed on a flat price plan instead. After the meter exchange, it was unclear if the retailer implemented this as promised. EWON provided general information and referred the matter to a senior team at the retailer.

The retailer confirmed he was initially changed to a Time of Use plan following the meter exchange because the network tariff changed to a Time of Use tariff. However, the retailer reverted him to a flat price plan according to his preference and backdated the plan to the date of the exchange. The customer was waiting for his first bill following the meter exchange to confirm the retailer’s advice and said he would contact EWON if there were any issues.