Better, safer, fairer default energy offers

New default energy offers will be available from July next year.

That means consumers on standing offers will have a hard-capped price, so big energy companies can’t charge customers a huge ‘loyalty tax’. Better still, these defaults provide a reference point - so it’s easier for people to compare energy offers across different retailers.

These offers will replace standing offers, which are some of the most expensive offers in the energy market. You may be on a standing offer if you’ve moved house and haven’t chosen your energy provider, have failed a credit check, or if your market offer has expired.

Replacing standing offers with lower-cost default offers has the potential to save households on standing offers hundreds of dollars each year. It will also help protect people who cannot, or choose not to engage with the energy market. This is why CHOICE has been campaigning for new safe default offers that are:

  • affordable, with a capped price
  • available to everyone
  • free from excessive marketing costs
  • a safety net when you haven’t chosen an energy offer, or your previous contract has expired

The Federal Government has made a commitment to introducing these types of offers. The crucial bit is the design. We recently responded to the Australian Energy Regulator’s consultation on the default offer price.

Check out our submission to the regulator here. We are broadly supportive of default offers, but offer a few recommendations to make sure that they are fair and affordable!