- Falling costs ‘not passed on to electricity users’
- By KAREN COLLIER
- 23/02/2016 Make a Comment
- Contributed by: MrNatural ( 11 articles in 2016 )
ELECTRICITY retailers have been accused of ripping off customers by failing to fully pass on falling costs.
Tens of thousands of Victorian households are being short-changed potentially millions of dollars, a report suggests.
While this year’s average annual power bills are set to shrink for many, the review claims “windfall gains” are still being grabbed from some customers. “It’s a bit rich that when the regulator cuts monopoly poles and wire prices these reductions don’t always end up in punters’ pockets,” said St Vincent de Paul Society analyst Gavin Dufty.
Energy giants disputed the Victorian Tariff Tracking Project assessment. They noted network charges made up only part of final bills.
Vinnies compared annual regulated network and smart meter fee reductions with the big three retailers’ recent price changes for default “standing offer” tariffs.
Origin Energy gained $22-$55 per typical-use household in its key standing offer networks, it concluded.
EnergyAustralia’s calculated windfall was $37 per average customer in its main standing offer zone. “Only AGL appears to have passed on these savings in full in most areas,” the report states.
“While other costs may impact on the prices retailers offer their customers, we note there is significant discrepancies between the reduction in regulated network charges and the reduction in retail prices.”
About one in five households is still on standing offers. Retailers typically heavily discount those basic rates when promoting market offers.
Origin Energy’s Ryan Auger insisted the company had “passed through changes to metering and network prices in full, to all of our customers in all five Victorian network areas”. Final retail prices also reflected wholesale and retailing costs.
EnergyAustralia’s Tamara Picco also said benefits were passed on to customers. “Any adjustments to our electricity tariffs, up or down, reflect not only network costs, but also the cost of producing and buying the electricity, government green schemes and the expense of running our business,” she said.
Mr Dufty urged people to regularly shop around for savings. “If you haven’t had a market offer, or haven’t refreshed it recently, you are being gouged,” he said.
Tens of thousands of Victorian households are being short-changed potentially millions of dollars, a report suggests.
While this year’s average annual power bills are set to shrink for many, the review claims “windfall gains” are still being grabbed from some customers. “It’s a bit rich that when the regulator cuts monopoly poles and wire prices these reductions don’t always end up in punters’ pockets,” said St Vincent de Paul Society analyst Gavin Dufty.
Energy giants disputed the Victorian Tariff Tracking Project assessment. They noted network charges made up only part of final bills.
Vinnies compared annual regulated network and smart meter fee reductions with the big three retailers’ recent price changes for default “standing offer” tariffs.
Origin Energy gained $22-$55 per typical-use household in its key standing offer networks, it concluded.
EnergyAustralia’s calculated windfall was $37 per average customer in its main standing offer zone. “Only AGL appears to have passed on these savings in full in most areas,” the report states.
“While other costs may impact on the prices retailers offer their customers, we note there is significant discrepancies between the reduction in regulated network charges and the reduction in retail prices.”
About one in five households is still on standing offers. Retailers typically heavily discount those basic rates when promoting market offers.
Origin Energy’s Ryan Auger insisted the company had “passed through changes to metering and network prices in full, to all of our customers in all five Victorian network areas”. Final retail prices also reflected wholesale and retailing costs.
EnergyAustralia’s Tamara Picco also said benefits were passed on to customers. “Any adjustments to our electricity tariffs, up or down, reflect not only network costs, but also the cost of producing and buying the electricity, government green schemes and the expense of running our business,” she said.
Mr Dufty urged people to regularly shop around for savings. “If you haven’t had a market offer, or haven’t refreshed it recently, you are being gouged,” he said.
Source: https://www.heraldsun.com.au/news/victoria/falling-costs-not-passed-on-to-electricity-users/news-story/de8fcb6adee9f7806377e888ea750389
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