Complex electricity tariffs doing more harm than good, as consumers fall through the knowledge gap
The rollout of complex new retail electricity tariffs is causing widespread confusion and leading to higher instances of bill shock, a new survey has found, confirming that more work needs to be done to ensure all consumers benefit from the transition to renewables.
The report, from Energy Consumers Australia, points in particular to time-of-use and tariffs, which it says can work well for a growing number of engaged “energy prosumer” households, but are unfairly punishing households who didn’t actually sign up for them or don’t know how they work.
Overall, the report shows that industry players and regulators are vastly overestimating the current level of engagement and understanding of the average Australian energy consumer, with a whopping 82 per cent unsure or unaware what a “retail tariff” actually is, or what rate they’re on.
How much a household pays for electricity depends on its electricity pricing plan, which is made up of variable costs – called an electricity tariff – and fixed charges, which are paid for each day or each billing period to cover the cost of grid connection, metering, administration and billing, and environmental fees.
