Consultations

The Authority is seeking feedback on its proposal to improve transparency of consumers’ electricity charges.

The Authority’s proposal would require retailers to provide information to consumers about any price changes in a standard form, so that the nature and reasons for these changes are clearly presented. Six other options for improving transparency of consumers’ electricity charges are also outlined.

Retail Advisory Group is undertaking a review of whether there should be more transparency around consumers’ electricity charges, The purpose of the review is to identify and recommend alternatives that promote competition by ensuring consumers have timely access to sufficient information so they can understand their bills, see what is driving price changes and make choices about their retailer.

This discussion paper seeks feedback on issues relating to the transparency of consumers’ electricity charges, so the Retail Advisory Group can clearly identify any problems to be addressed.

Paragraph 38 of the Government Policy Statement on Electricity Governance (GPS) states that the terms and conditions of contracts between domestic consumers and electricity retailers should reflect the reasonable expectations of customers. Paragraph 39 then goes on to state that the Commission should ensure transparency of charge components are addressed in contracts.

While the GPS does not specifically define what this means, over the years it has been assumed by some stakeholders that it relates to separating out (also referred to as unbundling) the distribution and transmission line charges from the generation/retail charges on the customer's bill.

This paper presents the Commission's preferred options to address the issue of transparency of charge components on consumer bills. The purpose of this paper is to consult with participants and persons that the Commission thinks are representative of the interests of persons likely to be substantially affected by this proposal to address the issue of transparency of charge components on consumer bills.