{"id":21527,"date":"2018-05-16T06:31:42","date_gmt":"2018-05-15T20:01:42","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=21527"},"modified":"2020-04-13T14:35:47","modified_gmt":"2020-04-13T04:05:47","slug":"electricity-discounts-gouging-mb0587","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/electricity-discounts-gouging-mb0587\/","title":{"rendered":"Crackdown On Dodgy Electricity Bill Discounts"},"content":{"rendered":"
\"Dodgy

Image: TheDigitalArtist<\/a><\/p><\/div>\n

Energy retailers will soon be prohibited from offering pseudo-discounts and a new investigation will determine whether Australian energy consumers are being gouged by networks in relation to corporate tax liabilities.<\/p>\n

In November last year, we mentioned big electricity discounts may not add up<\/a> – in some cases consumers can find deals with a small discount may provide better value than contracts offering a far greater one. It’s just something else that makes choosing an electricity retailer more confusing and frustrating for solar and non-solar owners alike.<\/p>\n

Victoria’s Essential Services Commission stated it’s possible to find offers with a 10 per cent discount that provide cheaper energy than those with discounts exceeding 30 per cent, and no doubt it’s a similar situation in other states.<\/p>\n

The Australian Energy Market Commission yesterday announced a new rule that kicks in from July 1 banning energy retailers from offering these inflated pseudo-discounts.<\/p>\n

“Discounting can work to benefit consumers as long as the details are properly disclosed,\u201d said<\/a> AEMC Chairman, Mr John Pierce AO. \u201cBut dodgy discounts deliberately designed to confuse consumers are not acceptable.\u201d<\/p><\/blockquote>\n

The new rule only relates to one particular aspect of discounting; where rates such as usage rates and daily charges in a contract are above the equivalent rates in a standing offer.<\/p>\n

The AEMC acknowledges there are also other problem areas, including conditional discounts such as pay-on-time discounts. These issues will be addressed in the Australian Energy Regulator\u2019s revision of the Retail Pricing Information Guidelines and also the ACCC\u2019s retail electricity pricing inquiry. The ACCC’s final report is due to the Treasurer by 30 June 2018.<\/p>\n

Aside from dodgy discounts, solar owners need to be particularly careful in their choice of electricity retailers – they may be attracted by a high\u00a0feed-in tariff<\/a> offered and forget to check the devil in the detail; such as the electricity buyback rate only applying for a limited time after signing up and significantly higher mains supply rates and charges than non-solar customers.<\/p>\n

Owners of solar power systems and those about to go solar can compare electricity retailer plans here<\/a>.<\/p>\n

Investigation Into Potential Gouging Of Electricity\/Gas Consumers<\/h2>\n

In related news, Federal Minister for Energy Josh Frydenberg announced yesterday an investigation into electricity networks and regulated gas pipelines concerning potential gouging of consumers.<\/p>\n

Regulated networks receive an allowance to cover their corporate tax liabilities, which is passed onto consumers at a cost of around $600 million annually. However, an Australian Taxation Office analysis of tax data between 2013 and 2016 has revealed a discrepancy between the tax allowances set for network businesses and the amount those businesses actually pay.<\/p>\n

“It is totally unacceptable for consumers to be charged for corporate tax liabilities that are not actually incurred,” said the Minister<\/a>.<\/p><\/blockquote>\n

An initial report from the Australian Energy Regulator (AER) concerning the issue is expected in the next couple of months, with a final report submitted to the COAG Energy Council by December 2018.<\/p>\n","protected":false},"excerpt":{"rendered":"

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