The ACT Government today has welcomed news that the Australian Energy Market Commission (AEMC) will make a new rule to prohibit energy retailers from making discounts appear bigger than they actually are. The AEMC is the independent rule maker for Australia’s energy markets.
Minister for Justice and Consumer Affairs Shane Rattenbury explained that the rule will ban energy retailers from discounting off market retail contracts where all the rates in the contract (such as usage rates and daily charges) are above the equivalent rates in a standing offer. The Minister added that the new rule starts on 1 July 2018.
“These types of deals are deliberately designed to confuse consumers—inflating the base rate to make discounts appear bigger than they actually are,” Minister Rattenbury commented “That said, we encourage consumers to keep an eye out for discounts, and to make sure you know what you are signing up to and choose what’s best for your household or business.”