Frequently Asked Questions
Q. What types of contract are available in the Victorian energy market?
A. There are two types of energy contract:
Standing contract
This is a basic contract you will be on if you have not entered into any new type of contract since the introduction of competition in 2002, or if you have moved premises and you have not negotiated a market contract. You may be on a standing contract now with AGL, Origin or TRUenergy.
From 1 January 2009, all retailers must offer this standing contract to you if they have responsibility for the house that you move into and you have not been offered a market contract by another retailer.The price for this standing contract is set by your retailer, and the other terms are set by the Commission in the Energy Retail Code.
Market contract
This is a contract negotiated between you and a retailer and may offer you a better price (or some other benefit) than the standing contract. Market contracts may have a fixed term (generally between one and three years), or could be on-going. You must give your explicit informed consent to the price and other terms of a market contract and you have a cooling off-period of between 5 business – 10 calendar days.
This is a contract negotiated between you and a retailer and may offer you a better price (or some other benefit) than the standing contract. Market contracts may have a fixed term (generally between one and three years), or could be on-going. You must give your explicit informed consent to the price and other terms of a market contract and you have a cooling off-period of between 5 business – 10 calendar days.
Q. Why choose a market contract?
A. You may save money on your energy bills by moving to a market contract. There are a growing number of energy retailers in Victoria offering a wide variety of energy deals, including options like green power, dual fuel deals and other offers and incentives. Just like other services, such as telecommunications, competition between retailers enables you to choose the price and service that is best for you.
Q. Do I have to install a new meter if I move to a market contract?
A. No. You will not have to install a new meter, even if you change retailer.
A. Moving to a market contract, whether with your existing retailer or with a new retailer of your choice, will not affect the reliability or quality of your energy supply.
Distributors own and manage the electricity poles and wires and gas pipes in the street to deliver electricity and gas to your home and are responsible for the quality and reliability of the supply. They also read your meter. You do not have choice of distributor.
Retailers buy the electricity and gas in bulk and then sell it to you. Retailers bill you and generally manage your relationship with the rest of the energy industry on your behalf.
A. Energy retailers have a mix of ownership and structures; some are publicly owned, others are owned by interstate governments, and some are privately owned by Australian or overseas investors. All retailers have been licensed by the Essential Services Commission and must meet certain criteria regarding their technical and financial capabilities. The retailer will be able to provide you with information about their ownership structure.
A. If you change your mind after entering into a contract you can change your mind without penalty for a certain period after you have entered the contract (called ‘cooling off’). Generally, you have 10 days to cancel a market contract, without incurring any fees or charges. If you cancel a market contract within this ‘cooling-off’ period, you will continue to be charged for the energy you use under the terms of your existing energy contract.
The Fair Trading Act 1999 enables you to exercise your cooling-off rights by completing and giving a cancellation notice to the retailer. The retailer should have provided you with a cancellation notice when you entered the market contract. If the retailer did not provide you with a cancellation notice, contact the retailer and ask for one. As well as sending in the notice, it’s a good idea to call your retailer to let them know you are cooling off.
Q. Does the Government set the prices for electricity and gas?
A. The Victorian Government removed its statutory pricing powers for small customers from 1 January 2009, and put in place new statutory requirements on retailers to publish standing offers and market offer prices in the Victorian marketplace. As a result, the Government no longer has a direct role in overseeing energy prices.
Q. Can the retailer change the price they charge me for electricity and gas after I've signed the contract?
A. Yes. The retailer can vary the price and any term and condition of your contract by seeking agreement with you in writing. If the amount of the price changes in accordance with some contract term and condition, they are not required to seek agreement in writing.
Q. I dont think I can pay my bill on time due to financial difficulties, what can I do?
A. Contact your electricity and/or gas retailer and ask for an alternative payment arrangement.
Q. Can I get green energy?
A. A number of retailers offer environmentally-friendly products. Most are accredited under the Government Green Power Accreditation Scheme. For more information about Green Power and which retailers offer Green Power products, visit the Government approved Green Power website.
