Last updated: 07 Nov 2024
Automatic transfer to a new energy company
On rare occasions, your electricity or gas company may stop operating due to financial or compliance problems and you’ll be automatically transferred to a new company.
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What you need to know
- If your electricity or gas company stops operating, you will be automatically transferred to another energy company to ensure that your electricity and gas supply is not interrupted.
- You do not have to do anything for this transfer to occur.
- You are not required to stay with your new energy company.
- If you are a life support customer, you should contact your new retailer as soon as possible to let them know.
- If you were receiving payment assistance from your old retailer, you should discuss options for payment assistance with your new retailer as soon as possible.
- You will not be transferred onto the same plan or on the same terms and conditions. You may not be on the same rates. You should consider asking your new retailer whether they have a better offer for you, or you can check the Victorian Energy Compare website to make sure you are on the best plan available for you.
Why am I being transferred?
Private sector companies sometimes stop operating when they are unable to continue doing business. The energy market in Victoria is a competitive market made up of many companies. It’s rare for these companies to close or exit the market but it can happen.
If your company stops operating, your account will be automatically transferred to a new company.
Who will I be transferred to?
The Australian Energy Regulator (AER) is responsible for overseeing the process when an electricity or gas company stops operating. The process is designed to ensure that, if a company is no longer able to operate, arrangements are in place to transfer its customers to some of the bigger energy and gas companies to ensure that consumers continue to receive electricity and/or gas supply.
If your company stops operating for any reason, one of these nominated companies must take you on as a customer. Which company you transfer to will depend on where you live in Victoria. If you need more information, visit the AER website (aer.gov.au/industry/retail/retailer-exit) or call the AER hotline on 1300 055 390.
Once the transfer has taken place, you are free to choose another retailer of your preference. You are not required to continue with the retailer after you have been transferred to them.
Do I need to do anything?
No. You don’t need to do anything to be transferred to the new company. The process is automatic and there will be no interruption in the supply of your electricity or gas. However, if you are a life support customer, it’s a good idea to contact the new retailer to make sure they know. You will receive a final bill from the original company up to when you were transferred.
The new company will receive some information about you, including your name and contact details, in order to transfer you. The new company must contact you to explain the change to your energy or gas account. After you transfer to the new company, your bills for energy or gas usage will come from the new company. There will be no overlap in the accounts, so you won’t be charged twice for energy or gas usage.
The company must take you on as a customer for three months. You don’t have to stay with the new company for the entire three months. You’re free to sign up to a new offer with another energy or gas company. If you do nothing, after three months you will be transferred onto the retailer’s standard contract.
What if I have special requirements for life support equipment?
You should contact your new electricity or gas company urgently to advise that you have life support equipment, even if you have previously advised your old company. You may need to provide your new retailer with confirmation from a medical practitioner. The new company must register you as having life support equipment at your premises and inform your distributor.
Will I be on the same plan?
No. The new company will transfer you onto base offers for electricity and gas in Victoria. For electricity, the Victorian Default Offer (VDO) will apply. For gas, the standing offer will apply. The rates in the VDO and standing offers are likely to be different to the ones you received on your previous plan. After you are transferred, you should consider checking the Victorian Energy Compare website to make sure that you are on the best plan available: compare.energy.vic.gov.au.
What if I was already in the process of transferring to or away from the company?
If you were in the process of transferring to the company that is no longer operating, you will remain with your previous company.
If you were in the process of transferring away from the company that is no longer operating, you should still be transferred to the new company of your choice. If you have any concerns whether this has occurred, contact your new company to check.
What if I have an outstanding balance with my company?
If you have an outstanding balance or debt with your original company, an administrator or another organisation responsible for handling the company’s finances may contact you to repay the debt. If that occurs, any protections you had under the Payment Difficulty Framework (PDF) will no longer apply. That includes any payment plans you may have negotiated with the original company.
If you have received contact from an administrator about an outstanding bill that you are having difficulty paying, you may wish to contact Financial Counselling Victoria for free and independent information to people experiencing, or at risk of, financial difficulty: fcvic.org.au/contact
What if something goes wrong?
It’s likely that the process of being automatically transferred to a new company will happen without any issues. However, with any process involving a considerable amount of information, errors can happen. These errors could be about bills, fees charged or other issues.
How can EWOV help?
We can help resolve most disputes between you and energy companies in Victoria.
While we may not be able to help resolve new disputes between you and an energy company that has stopped operating, we may be able to refer you to a more appropriate company to deal with your dispute. For more information, visit ewov.com.au or call us on 1800 500 509.