Fixed-rate energy plans to keep prices at bay

EnergyAustralia, one of the country's leading energy retailers, today said there was still time for customers to avoid rises in electricity and gas tariffs for 2020 by taking up one of the company's fixed-rate products.

EnergyAustralia Chief Customer Officer Mark Collette said new and existing customers on the company’s No Frills or Total Plan could lock-in current rates until 30 December 2019.

This follows an announcement in November by the Essential Services Commission (ESC) that Victorian default offer electricity tariffs for 2020 will increase by an average 7.8 per cent. The ESC said rising costs for poles and wires networks and wholesale electricity drove the price determination.

After reviewing the ESC’s determination, EnergyAustralia has adjusted its tariffs. Effective 27 January 2020, the electricity bill for an average EnergyAustralia customer[1] in Victoria not on a fixed-rate product will also increase by 7.8 per cent, or $164 a year. The average gas bill will rise by 1.7 per cent, roughly the rate of inflation, or $27 a year.

The price rises will not apply to around 25 per cent of EnergyAustralia customers already on fixed-rate products.

“We really want customers to sign up before 30 December, to lock-in their rates at 2019 levels and avoid the January price increase,” Mark said.

“That means if our costs rise, we take a hit: for customers on our fixed-rate plans, their prices won’t change. We’ll also continue to support vulnerable EnergyAustralia customers and invest in our existing and new assets to add capacity and reliability to the system,” he said.

NOTE TO EDITORS: 

• On 25 November 2019 the Essential Services Commission (ESC), Victoria’s independent regulator responsible for reviewing all electricity supply costs, raised the default electricity price for households and businesses by an average 7.8 per cent in 2020.  
• The ESC attributed 95 per cent of the rise, effective 1 January 2020, to rising forecast wholesale prices and network prices. 
• EnergyAustralia’s No Frills and Total Plan market offers, which give customers the ability to lock-in prices for 12 months, are available online at: https://www.energyaustralia.com.au/offer  
• Prices for customers already signed up to EnergyAustralia’s No Frills or Total Plan will not change until the end of their benefit period.  
• No Frills and Total Plan were introduced on 1 July when EnergyAustralia relaunched its market deals, prioritising simplicity and fairness. The changes included:
  • Eliminating frustrating plan features like pay-on-time discounts
  • Applying discounts off the total energy bill (rather than off usage rates only)
  • Making sure the prices customers sign up for apply for the full term of new contracts, and
  • Lifting the bar for energy comparator services with standardised guidelines so customers can make easy comparisons wherever and however they choose to buy their energy.

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