Careful of 'Fine Print' When Switching over to Fixed Electricity/Gas Plans to Avoid 01JUL Price Increases

Hi,

As we all know 20-25%+ price increases will hit most consumers after 01JUL23. I like most am on a variable tarrif and called my retailer (Red Energy) today to enquire about switching to their Fixed plan, which has prices fixed until JAN24.

The fixed prices are 10-15% higher than current variable rates for nearly all charges (I'm TOU+CL1 in Essential Energy area) - but I felt this still preferable to the post 01JUL increases - which Red Energy dubiously claims not to be aware of the scale of (yeah right).

So I ask to be moved over to the fixed plan - the moronic Customer Service person (as sorry she was a real twit hanging up on me once and having to call back and just generally thick) starts reading out the T&Cs and I am barely listening to her jabber on….and then I hear a detail to the effect of,"Your new rates will be effective from the first day of your CURRENT billing period."

So they don't apply from today, they're backdated to whenever your billing period started, which for me was around 85 days ago. I ask her if this is legal under Australian Consumer Law (as contractually there was an agreement on price and they are going back and raising it, when I only want it changed moving forward) as makes no sense to go back and retrospectively increase rates for a change today. She says it's 'legal' as she's saying it and I don't have to agree (which is nonsense but as i said she was a twit).

She says this is never a problem as people never call to switch onto higher rate plans from lower ones and they backdate lower rates to benefit consumers, so I have to just accept that essentially an entire 3mths (less 4 days) is instead increased price, if I want to change today.

I say this is clearly just an accounting /systems issue for them and is illogical for the consumer, she says - thats the option, take it or leave it.

My billing period is 14MAR to 13JUN so I ask her to instead make the change effective from 14JUN, nah she can't do that - tells me I have to call back to request.

So be aware that IF you change to fixed, prior to 01JUL you might have your entire billing period calculated at much higher rates, so clarify when your new/fixed rates are effective from or waiting to change to fixed rates might be best done after your current billing period ends.

:-)

Comments

  • +3

    Thanks for the heads up Nikko - the whole energy market is a sh!tshow.

    My story - I moved to and fixed with Nectr Jan23 and recently got an email saying they were moving me to their current customers only benefit plan which has lower rates than I'm already on. I thought "sweet" prices going down, that's a first. However a subsequent email cancelled out the previous and as a gesture will keep my current plan going till 14 July. This moves me into the after 01 July era you refer to. I'm on a month by month estimated bill - expiring 30 June (now 14 July) with the next actual reading due 23rd June and bill issue date 4th July.

    • +1

      You're welcome.

      Yes, the powers that be really have allowed it to become a circus & nightmare for consumers - much the same as with superannuation and a bunch of others.

      I really do feel for the older or challenged folks as even when you have access to the govt comparison site it's not unusual to see companies taking the piss offering dozens of different plans with different rates and discounts all for your own area, trying to mislead consumers. There's no good reason it should be allowed.

      And this is not to mention the shitshow that privatising this infrastructure is etc….really feels like the lobbyists got their talons into pollies at the publics massive expense.

  • You can just switch any time anyway….

    • Yes you can JV, but critically you can't switch to ANY plan at any time - fixed plans are very rare and when I called the Red Energy Clown actually thought that they'd ALREADY removed the fixed plan from their website, so I think there is a chance they remove it completely within the short term.

      I've diarised to call back on the 1st day of my billing period, next WED to try and switch tarrifs once again - so we will see.

      • +1

        the Red Energy Clown

        Did they send you a tshirt ?

        • +1

          Alas no, just stole 1hr of my life trying to talk common sense into them, so that t-shirt would have been welcomed. ;-)

  • Is there a way to find out which retailers are offering fixed prices?

    I'm with Lumo right now but signed up last year on a fixed rate, which would be ending in the coming couple of months (VIC)

    • Some of the comparison ones (try and use govt ones that are non-fee/commission driven) allow you to select this, otherwise can only hunt the retailers sites (which is very slow) so suggest the former plan of action.

  • A real pain right now as I want to switch my gas supplier before the 40%+ increase happens, but nobody has published the rates after 1st July.
    If I just use the comparison sites, the best deal is Globird - who are the people about to sting me with a 40% hike!

  • +1

    Companies should have to dual quote. This is your rate until x. After x, your rate will be. Should have to do it if the price increase is going to impact after your first bill or during that first billing cycle.

  • -1

    My billing period is 14MAR to 13JUN

    So just call after 13 june to make the switch???

  • You might just find that they announce their new prices on June 13 and you will miss out. My retailer says they will announce the prices 2-3 weeks before they are implemented. That we know is 1 July

    • Yup, my thoughts exactly and why I thought they'd show common sense instead of trying to backdate the ~95% of my billing period thats already elapsed at higher rates.

      But apparently that was 'impossible' to do.

  • Where'd you find their fixed rate offer? All plans I can see on their site seem to be no-contract.

    • It's still on main page for NSW but appears gone for all other states.

  • +1

    What about churn to another provider for 1 day, finalise your current bill then sign-up again? Play their stupid system

  • starts reading out the T&Cs and I am barely listening to her jabber on….

    https://www.ozbargain.com.au/node/781282

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