Save
Energy retailers urged to give leeway on electricity bills
Energy businesses are being asked to put customers first as the economic impacts of COVID-19 reverberate through Australian communities.
Energy retailers urged to give leeway on electricity bills
Energy businesses are being asked to put customers first as the economic impacts of COVID-19 reverberate through Australian communities.
The Australian Energy Regulator (AER) has released a statement highlighting that energy is an “essential” service, with the energy market having “an important role to play in protecting and supporting businesses and the community through the COVID-19 pandemic and our recovery”.
The regulator provided a number of expectations that it has of the industry to protect consumers during the current global health crisis, with AER chair Clare Savage stating that energy retailers will be expected to act according to the magnitude of a crisis that has already created significant unemployment and consumer loss of income.
“Many people are or will be affected by dramatic changes to their lives, businesses, income and working arrangements, and those of their friends, families and communities,” she said.
“As a result, their energy use and ability to pay their bills could be affected.”
AER said it expects energy retailers to offer payment plans or hardship arrangements to all residential and small-business customers who indicate they may be in financial stress, regardless of whether the customer meets “usual” criteria for this kind of assistance.
It also called for no disconnections of residential or small-business customers who may be in financial stress without agreement before 31 July 2020 – but potentially beyond.
Ms Savage noted that energy businesses operate as part of the community, and so bear the weight of community expectations.
“People enter into a contract when they sign up with an energy retailer. But businesses also have a deal, a social contract, with the community in which they operate. At a time like this, it is vital they remember their broader social obligations,” she outlined.
“When people have lost their jobs or business through no fault of their own, it is only fair to expect that they be given any and all help possible, and that includes from their energy providers.”
AER is also requesting the deferral of customers to debt collection agencies for credit default listings or recovery actions until at least 31 July 2020.
“We will be monitoring the whole market to ensure all customers are properly protected,” Ms Savage continued.
She indicated that the AER is not calling for an amnesty on bill payments – she encouraged those Australians who can to pay their bills on time to continue to do so.
“This is vital to ensuring the ongoing viability of energy businesses. However, we also recognise that the circumstances arising from this pandemic mean more customers may find it difficult, or impossible, to pay their bills at the moment.”
Ms Savage is urging concerned residential or small-business customers to “get in touch with your retailer immediately and seek their support”.
“This does not necessarily mean ringing a call centre, as many retailers offer payment assistance options like extensions to due dates through their websites.”
About the author
About the author
Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. ...Read more
Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more
Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more
Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more
Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more
Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more
Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more
Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more
The Olympic effect on property and equity investors; COVID-19 Disaster Payments and super
Listen now
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. ...Read more
Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more
Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more
Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more
Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more
Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more
Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more
Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
