Energy Legislation Amendment (Energy Fairness and Other ...



NATIONAL ENERGY LEGISLATION AMENDMENT BILL 2020TABLING SECOND READING SPEECHSecond?Reading?Speech??I move that this Bill be now read a second time.?Today’s National Energy Legislation Amendment Bill 2020 contains a number of technical amendments to change the timing of electricity and gas network regulatory periods in Victoria from a calendar to financial year cycle. This Bill forms part of the Government’s broader package of reforms aimed at making Victoria’s energy retail markets simpler and fairer, and cutting the cost of energy for Victorian households and small businesses.Currently in Victoria, retail electricity and gas prices tend to change on 1 January rather than on 1 July, as occurs in the rest of Australia. This is because distribution charges, a component of the price that consumers pay to bring electricity and gas to their homes, are updated annually on a calendar year basis rather than a financial year basis. As a consequence, Victorian consumers are often notified of increases to the costs of their electricity or gas plans following the Christmas and New Year period, when cost of living pressures are already high. Further, many consumers are too busy at this time of year to engage with the market to find a better offer elsewhere.The Bill will amend the National Electricity (Victoria) Act 2005 and the National?Gas?(Victoria)?Act?2008 to change the regulated electricity and gas network distribution pricing periods in Victoria from a calendar to financial year basis. The current electricity distribution determination period will be extended from 31 December 2020 to 30 June 2021. The current gas distribution access arrangement will be extended from 31 December 2022 to 30 June 2023. This will align the Victorian electricity and gas network regulatory periods with other jurisdictions in Australia.The Bill builds on existing reforms delivered under our Government’s Energy Fairness Plan. Last year we implemented the Victorian Default Offer, or VDO. The VDO represents a simple, fair price for electricity that customers can feel confident in, replacing former costly standing offers. Our free and independent energy price comparison website, Victorian Energy Compare, has been accessed by 2.7 million Victorians. Seven-out-of-ten customers have been able to find a better deal by switching retailers and saving $330 on average in the first year alone. Customers who have used the website to compare offers have been able to access the Government’s $50 Power Saving Bonus, which we extended to 30 June 2020.We are also on track to implement the remaining recommendations from the Independent Review into the Electricity and Gas Retail Markets in Victoria. Upcoming reforms will limit the frequency with which retailers can increase their prices to once per year, make marketing of energy deals clearer and less confusing for customers, and cap pay-on-time discounts so that customers are not unfairly penalised if they are late making a payment.This Government remains committed to implementing the remainder of the Energy Fairness Plan. Forthcoming legislation will ban door-to-door sales and cold-calling by energy retailers; ban ‘save’ and ‘win-back’ offers by energy retailers who try to hold onto their customers by making enticing offers that are increased after a short while; and overhaul and increase penalties for energy retailers who provide false or misleading information or wrongfully disconnect customers.I commend the Bill to the house. ................
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