More Victorians will have the option of moving to flexible pricing plans for electricity from the middle of 2013 after the State Government lifted an moratorium on flexible pricing.

 

State Minister for Energy and Resources, Michael O’Brien, said that the move to wider availability to flexible pricing plans is designed to provide energy customers with more options to reduce their own power bill, while also taking the pressure off everyone’s power bill by reducing the need for expensive network upgrades and new generating plants.

 

Mr O’Brien said that at present most customers paid a flat rate for the electricity they used and do not have access to off-peak rates. Around 12 per cent of residential and 20 per cent of business customers already access flexible rates.

 

“Where it suits households or small businesses’ energy use patterns, they will be able to consider a pricing plan that can save them money,” Mr O’Brien said.

 

“Alternatively, they might decide to shift the times they use some appliances or equipment to reduce their energy bill.

 

“Customers who want to try new flexible pricing plans will be able to do so with confidence. Importantly, households who prefer to stay on their flat rate will not be forced to change.”

 

 

There will be a ‘safe try’ period up until March 2015 during which households will be able to move to a new flexible price offer with their current retailer with the confidence that they can switch back to their previous tariff without penalty if they are uncomfortable with the change.

 

“I encourage customers to take the time to determine if they will be better off with a flexible pricing plan based on when and how they use their power,” Mr O’Brien said.

 

“Making a change is voluntary, and for some customers it will make a lot of sense and offer real savings on electricity.

 

Flexible pricing will be available from participating energy retailers to customers with smart meters.

 

For more information on flexible pricing go to www.switchon.vic.gov.au