Energy retailers commit to change as Frydenberg puts them on notice

Electricity retailers have acknowledged the industry must change to restore trust with the community as Environment and Energy Minister Josh Frydenberg warned the government could introduce tougher laws to protect consumers.

The major retailers have been driving prices down in
 response to consumer unrest and falling wholesale energy prices.

A report released by the Australian Energy Market Commission on Friday found consumer trust in the sector fell from 50 per cent in 2017 to 39 per cent in 2018. This level is lower than for the banking and telecommunications industries.

Energy retailers told Fairfax Media they understood why consumer confidence in the sector had waned amid confusing discounting practices and high prices.

Read Cole Latimer’s story from The Age - “Energy retailers commit to change as Frydenberg puts them on notice.”

(Is this real or rather is it simply “dog whistling” to coalition supporters? And, after all it is not what Australia needs to do (it’s inadequate in every sense) if we are to play an active, positive, and real role in countering climate change - Robert McLean).

Energy illiteracy stopping Australians from cutting power bills

A lack of trust in electricity retailers and energy illiteracy is slowing Australians in driving down their power costs.

Rising power bill prices have changed the way
 many Australians are consuming energy.

A survey carried out in April of more than 1000 people in Sydney and Melbourne found people had less trust in power companies to act in the public interest than both banking and the media, and they want electricity companies to provide them more information to help control energy usage but don't know enough about the technology available to help themselves.

Read Cole Latimer’s story from The Age - “Energy illiteracy stopping Australians from cutting power bills.”

Former EnergyAustralia exec says electricity retailers are unethical

The former head of EnergyAustralia’s retail arm says the energy industry has reached a tipping point and company behaviour is at an all-time low as the industry tries to rebuild the perception of electricity retailers.

Adrian Merrick previously led EnergyAustralia's retail
 arm and now believes many retailers in the industry are
 working against the customer.

“Major retailers have spent 15 years defending their indefensible behaviour and now they’re trying to have ethical energy retailing in Australia,” said Adrian Merrick, who is now the chief executive of electricity retailer Energy Locals.

“It’s pretty bad at the moment.”

Read the story from The Sydney Morning Herald by Cole Latimer - “Former EnergyAustralia exec says electricity retailers are unethical.”

Malcolm Turnbull has little chance of keeping energy bills under control

It's never my policy to feel sorry for any politician, so let's just say I wouldn't like to be in Malcolm Turnbull's shoes when he meets the electricity retailers he's summoned to Canberra on Wednesday.

His hope is to persuade them to do more to help their customers find the best prices on offer, so that any savings customers make reduce, to some extent, the further big price rises that are on the way.

Illustration: Andrew Dyson 

Trouble is, it's long been the practice of many big businesses – telcos, internet service providers, electricity retailers – to make it as hard as possible for their household customers to find the "plan" that meets their needs most economically, and also to take advantage of any trusting customer on a more expensive plan than they need.

So, whatever noises they make after their meeting with the Prime Minister, I can't see the likes of Energy Australia, Origin Energy and AGL – which between them have about 70 per cent of the retail market – volunteering to help their customers pay less.

Read the comment piece by Ross Gittins in today’s Melbourne Age - “Malcolm Turnbull has little chance of keeping energy bills under control.”