What if your retailer fails
The Victorian Government has put in place a Retailer of Last Resort (ROLR) scheme to ensure that customers are not disconnected from their power supply should their retailer fail. A failed retailer, for the purposes of the RoLR scheme, is a retailer whose licence is revoked or whose right to acquire electricity or gas from the wholesale market has been suspended or terminated.
What happens when a retailer fails?
If an energy retailer fails, all of its customers will be automatically transferred to the RoLR with no loss of connection. The RoLRs in Victoria are the three local retailers which cover the entire state. Therefore depending on where the customer is situated, the RoLR will either be AGL, Origin Energy or TRUenergy.
If one of the local retailers fails, its customers will be transferred to the two remaining local retailers.
Customer consent is not required
The transfer of customers from the failed retailer to the RoLR is automatic and customer consent is not required and where an actual meter reading cannot reasonably be obtained for the effective date of transfer, the transfer may occur on estimated meter reads. This provides for a quick and efficient transfer process that ensures customer are not disconnected from their power supply.
Small customers
Those whose consumption is less than or equal to 160 MWh of electricity per annum and/or 5TJ of gas per annum.
Automatic cancellation of contract with the failed retailer
A customer’s contract with a retailer will automatically terminate on failure of that retailer. Customers will not be required to pay early termination fees when their contract is cancelled under these circumstances.
If a customer holds a dual fuel contract under which both gas and electricity are sold as part of the same contract and a RoLR event occurs in relation to one of the sources, the customer may terminate the energy contract in relation to the unaffected sources. Customers who choose to do this are required to give seven days notice to the retailer within 14 days of the RoLR event occurring.
RoLR tariffs, terms and conditions
Small customers will be sold electricity and/or gas by their RoLR at tariffs, terms and conditions approved by the Commission.
Large customers
Those whose consumption is more than 160 MWh of electricity per annum and/or 5TJ of gas per annum.
RoLR tariffs, terms and conditions
Large customers will be sold electricity and/or gas by their RoLR at tariffs, terms and conditions determined by commercial negotiation between them and the RoLR.
How long do customers have to stay with their RoLR?
Customers can choose to transfer from the RoLR to another retailer whenever they want. However, customers should be aware that their transfer will not be effective until their next scheduled meter reading, unless they have requested a special meter reading.
Customers can also choose to enter into a market contract with their RoLR. For market contracts, the tariffs, terms and conditions are negotiated between the customer and the retailer. The terms and conditions, however, are required to be consistent with the Commission’s Energy retail code.
When do the obligations of the RoLR cease?
The obligations of the RoLR cease after three months. Therefore, small customers who have chosen not to transfer away from the RoLR or enter into a market contract with the RoLR, will be placed on to a default arrangement with their local retailer after three months.
For more information: Please contact the Commission on 9651 0222 or by email at reception@esc.vic.gov.au.
