The Australian Energy Market Commission (AEMC) has announced major reforms that will deliver stronger protections for energy consumers.
The new rules will restrict energy retailers from raising prices more than once per year, remove unfair fees for vulnerable customers, and ensure hardship customers benefit from their retailer’s cheapest available deals if they cannot switch.
Related article: Regulator’s draft DMO reveals cost increases for consumers
AEMC chair Anna Collyer described the changes as a significant milestone in consumer protection.
“These reforms will help ensure that Australian households can have greater confidence in their energy plans and that those experiencing financial difficulty receive appropriate support,” Collyer said.
“For the first time, we have formally applied our updated equity guidance across these rule changes, explicitly considering how contract terms, benefits, and fees may disproportionately impact vulnerable consumers.”
The final determination addresses systemic issues affecting consumers’ trust in the energy market. The final rule will:
- protect customers from paying higher prices for their loyalty by ensuring they pay no more than the standing offer price if their energy plan’s benefits change or expire
- remove unreasonably high penalties for not paying bills on time
- restrict retailers from increasing prices in market retail contracts more than once every 12 months
- prohibit retail fees for vulnerable consumers and limit fees and charges to reasonable costs for all other consumers.
Related article: Energy consumers request rule change from AEMC
“By limiting retail energy price increases to once per year, which for most customers will fall in July to align with regular industry updates, we’re ensuring Australian households can better predict their energy costs and avoid unexpected price rises throughout the year,” Collyer said.
The new rules on improving consumer confidence in retail energy plans will take effect from 1 July 2026, giving retailers just over 12 months to implement the changes.
