Energy supplier performance - Marketing rules
Last updated: 23 Dec 2010
Since 2002 small customers in NSW (households and small businesses) have been able to choose their energy supplier. This is known as full retail competition. Customers have a choice of standard supply with a regulated contract and regulated prices, or a market contract. These market contracts are offered by all retailers and are subject to regulation but retailers can decide the price they wish to charge the customer. The prices charged under market contracts can vary depending on what else is offered to the customer. For example, customers may be offered a discount on the price of energy in exchange for agreeing to take supply for a fixed term.
Effective competition in the energy market relies on consumers being confident they will be treated fairly by retailers. This includes customers being given the information they need to make an informed choice about their energy contract.
The Energy Marketing Code of Conduct (159kb PDF) was introduced by the NSW Government in 2002. The Marketing Code of Conduct, Electricity Supply (General) Regulation 2001 and the Gas Supply (Natural Gas Retail Competition) Regulation 2001 have recently been updated to reflect the strengthened marketing provisions contained in the Australian Consumer Law and the commencement of the energy price comparison service. These changes will commence on 1 January 2011.
The Code places a number of obligations on energy retailers and their agents. One of these obligations is for a retailer or its agent to ensure that a consumer is informed of the terms of a market contract for electricity or gas. The key information to be provided to the customer includes:
- any fee or commission that the marketer is entitled to receive from the retailer;
- the duration of the contract and any conditions or charges for extending the contract;
- all the charges to be paid by the customer, including security deposits or fees for early termination;
- the customer's right to a standard contract;
- details of the cooling-off period available to the customer;
- the customer's right to bring complaints to the Ombudsman;
- the expected date of commencement of the supply of energy under the contract;
- a copy of the contract or a summary.
Compliance with the Code is enforced by the independent regulator, the Independent Pricing and Regulatory Tribunal (IPART).
In addition, the Energy and Water Ombudsman NSW (EWON) is able to assist customers to resolve complaints concerning the behaviour of energy retailers. The Ombudsman also assists IPART to monitor compliance with the Code by retailers.