The AEMC released a consultation paper on 28 November 2024 that seeks stakeholder feedback on the Preventing price increases for a fixed period under retail market contracts rule change request and three other rule change requests submitted by the Hon. Chris Bowen MP, Minister for Climate Change and Energy, as Chair of the Energy and Climate Change Ministerial Council (the proponent), about changes to retail energy contracts. The four rule change requests covered in the paper are:

1. Ensuring energy plan benefits last the length of the contract
2. Removing unreasonable conditional discounts
3. Preventing price increases for a fixed period under market retail contracts
4. Removing fees and charges.

Submissions to the consultation paper are due 16 January 2025

Written submissions responding to this consultation paper must be lodged with Commission by 16 January 2025 via the Commission’s website, www.aemc.gov.au. Please use the project code RRC0058 when lodging a submission.

The rule change request seeks to reduce the number of price increases that can occur

The proponent suggests frequent price increases may be harming consumers. It notes that retailers’ pricing strategies are not always clear to consumers and there is no easy way for consumers to know when and by how much their energy price will increase.

The proponent suggests this increases switching costs for consumers seeking to remain on competitive offers and may reduce consumer confidence in the market

The rule change request recommends changes to the National Energy Retail Rules (NERR) to prevent price increases for a specified fixed period. The proponent considers this change would provide consumers with greater certainty and predictability over energy bills.

We have also released a consultation paper on assisting hardship customers

A consultation paper on Assisting hardship customers was also released on 28 November 2024, with submissions closing on 16 January 2025. See the consultation paper here.

Background

On 12 August 2024, the AEMC received a rule change request from the Hon. Chris Bowen MP, Minister for Climate Change and Energy, as Chair of the Energy and Climate Change Ministerial Council (ECMC). The rule change seeks to amend the NERR.

The rule change forms part of a package of proposed rule change requests to be submitted by Energy Ministers at their meeting on 19 July 2024. The package of consumer related rule change requests include:  

• Ensuring energy plan benefits last the length of the contract 
• Preventing price increases for a fixed period under market retail contracts 
• Improving the ability to switch to a better offer 
• Assisting hardship customers
• Removing fees and charges 
• Improving the application of concessions to bills
• Removing unreasonable conditional discounts