Energy and Water Ombudsman (Victoria) (EWOV)

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Choosing an energy retailer
Information for community agency workers in Victoria, Australia

Choice is available
Your client does not have to go on a market contract
Market contracts: How to choose
Door-to-door sales and phone sales
Does your client want to stop energy marketing to them?
EWOV’s marketing and transfer cases
More useful information
Related EWOV webpages

Choice is available

Your client can choose their preferred electricity and/or natural gas companies.
Since choice was introduced in 2001, more retailers have entered the Victorian market.

As at mid-June 2008, there are 13 retailers selling to residential customers in Victoria.

Eight retailers offer electricity and natural gas:

Five retailers offer electricity only:

In addition, Dodo Power & Gas is likely to market electricity and natural gas to residential customers in Victoria soon.

For each retailer’s contact number, see the Essential Services Commission’s (ESC’s) list of energy retailers (last updated November 2007).

Or, all these energy retailers are listed on EWOV’s website (with links to their websites).

Your client does not have to go onto a market contract

Your client does not have to go onto a negotiated market contract.

Your client’s other option is to go onto a ‘standard contract’ with the local retailer—
AGL, Origin or TRUenergy (formerly TXU), depending on the area – see the ESC’s maps.

There are two key differences:

The local retailer has an ‘obligation to supply’ a standard contract to customers in
their area. (Retailers do not have to offer customers a market contract.)
The tariff rates on a standard contract have been overseen by the Victorian
Government (but this will change from 1 January 2009).

Market contracts: How to choose

The main advantage of a market contract is that it may save your client money—if it
is chosen carefully.

It’s up to your client to decide if they want to go onto a market contract and, if so,
which retailer (or retailers) they want to choose.

If they do want to go onto a market contract, here are some key things to consider:

Are they already on a market contract?
If so, check if there will be an exit fee (also called a termination or cancellation fee)
from their current retailer if they change. You or your client may need to ask their
current retailer about that.

How long is the market contract for?
Some market contracts are for a fixed-term—for example, one or three years – with
an exit fee if your client ends the contract early. Check how soon your client is likely
to move address. If they’re likely to move before the contract term ends, they may
have to pay an exit fee. (Sometimes a retailer will only waive this exit fee if your client stays with that retailer at their new address.)

Will it be cheaper?

Comparing an offer with recent bills
Your client will need to use a bill or two to work out how much electricity and/or gas
they use and what they’re paying for it.
The Essential Services Commission has an energy comparator—it will help your client compare an offer they’ve received with their recent bills.

Comparing many offers
There are also some commercial websites that compare multiple offers. EWOV doesn’t endorse these websites. These websites may not have all energy retailers’ offers on them, so your client may not get a full comparison of offers. However, you may like
to look at one or two examples:

(Generally, if your client enters a market contract using one of these websites,
the website operator will receive a commission from the acquiring energy retailer.)

Does your client have off-peak electric appliances (for hot water or heating)?

If so, ask the retailer if your client can still get a cheaper off-peak electricity tariff to
run these appliances.

Frequency of billing
Does your client want to pay monthly or quarterly? Some energy retailers offer monthly billing. (Either way your client’s electricity meter will still be read every three months
and their gas meter every two months—so monthly bills in-between meter readings
will be estimated.)
Does your client have a debt with their current electricity and/or gas retailer?
If your client has a ‘certified debt’ with their current electricity retailer (>$200 overdue
for >40 business days), or an ‘aged debt’ with their current gas retailer (>$100 overdue
for >40 business days), then their current retailer is allowed to block your client’s
transfer to another retailer.

For materials that will assist your clients, see more useful information (below)

Door-to-door sales and phone sales

Most people in fact change because a salesperson, acting for an energy retailer, has knocked on their door or phoned them. That’s fine, if the deal offered suits them. But your client
should be aware:

it’s ok to say ‘no’—the marketing rules say a salesperson must leave a property
(or end a phone call) immediately when asked
if they say yes to a salesperson from a different company, they will be changing
retailers and getting their bills from that different company—sometimes salespeople
say ‘your supplier won’t change’ but that’s a reference to the distributor (which owns
the poles and wires or pipes), not the retailer (which sends the bills)
a change of energy retailer can take several months—it usually occurs on the date
of the next scheduled meter read (electricity meters are read every 3 months and gas meters every 2 months)
if they say yes, they have ten business days to ‘cool-off’, that is, cancel the contract without penalty (if the contract involves actually connecting the gas or electricity,
the cooling-off period is only five business days)
if they say yes to a door to door salesperson, the terms and conditions must be
provided straight away
if they say yes over the phone, the terms and conditions must be sent within
2 business days (if they are not received until after the cooling-off period has expired, then phone the company to let them know this and to ask for more time to cancel without a penalty; if unresolved, EWOV can investigate the matter)
they are entitled to take time to consider the decision and look at the information—
sometimes they might be pressured to agree straightaway and use the cooling-off
period to consider the material, which is not ideal
their consent to transfer energy retailer must be explicit and informed and shown
by either a signature on a contract (for door-to-door sales) or a voice recording
(for phone sales), kept by the energy retailer.

Does your client want to stop energy marketing to them?

If so:

To stop the phone sales calls, they can enroll in the Do Not Call Register
(administered by the Australian Communications and Media Authority).
Go to the Do Not Call website or phone 1300 792 958. It takes 30 days for the registration to become effective.
To reduce door-to-door sales, they can get a ‘Do not knock’ sticker from the
Consumer Action Law Centre – by sending it a stamped and self-addressed envelope
(to Level 7, 459 Little Collins Street Melbourne 3000), or downloading it from the
Consumer Action Law Centre’s website . The sticker is also available from a variety
of community agencies listed on the Consumer Action Law Centre’s website.

EWOV’s marketing and transfer cases

From July to December 2007, about 288,000 Victorians switched electricity retailer and
about 185,000 Victorians switched natural gas retailer. In this period, EWOV received
1,436 transfer issues and 473 marketing issues. This equates to about one issue for
every 250 customers that switch retailer.

However, there is a bigger picture because:

for various reasons, some customers don’t complain to EWOV (or to retailers)
many transfer and marketing issues are systemic in nature (i.e. they affect numbers
of customers).

The types of marketing and transfer issues received by EWOV are reported in our
Resolution newsletters and Annual Reports.

When a complaint raises potential code and legislation compliance issues, EWOV:

works to resolve the individual complaint
can also report the potential compliance issues to the retailer and regulators for their consideration—a Market Conduct Reporting Protocol (involving EWOV, the ESC,
Consumer Affairs Victoria, and Australian Competition and Consumer Commission)
governs this reporting.

EWOV’s fact sheet on Choosing your energy retailer

Essential Services Commission’s step-by-step guide to choosing a retailer

(plus their Choice booklet and an Energy facts guide)

Related EWOV webpages

Moving in or moving out?

Energy and water prices

Last updated: 12 June 2008
Feedback about this webpage: website@ewov.com.au
For enquiries and complaints, phone 1800 500 509 or see our enquiries and complaints webpages.