New support is being provided for the energy market, as retailers continue to help customers impacted by COVID-19.

A recent decision by the Australian Energy Market Commission will allow some retailers to defer payment of network charges, providing relief to those with cash flow problems as they support customers who are in financial stress because of the pandemic.

“We are seeing a lot of retailers going above and beyond to support their customers who are doing it tough because of COVID-19 – that’s why we proposed this new support for retailers,” says Australian Energy Regulator (AER) chair Clare Savage.

“Energy retailers have an ongoing responsibility to support customers who have been affected by the pandemic. That extra customer support, such as payment plans and deferrals, comes with risks and costs that can affect a retailers’ cash flow.

“Allowing some retailers to defer their payment of network charges for six months will provide a buffer for retailers.

“Keeping up the operation of energy retailers is critical to maintaining competition in the market. More competition means more options and competitive prices for customers.

“It is only fair that the COVID-19 financial burden is shared throughout the energy supply chain.

“Deferral of network charges complements the AER’s recently updated Statement of Expectations of energy businesses, which outlines what we expect energy providers to do to support their customers in financial stress because of the pandemic.”

The AER’s Statement of Expectations 2 comes into effect this month and requires energy providers to help their residential and small business customers by:

  • providing information about concessions, rebates and other support
  • offering a payment plan based on a customer’s capacity to pay with a no payment window if required
  • not disconnecting anyone who is in contact with them
  • immediately reconnecting anyone who may be disconnected once they make contact and waiving any associated fees
  • not referring customers to debt collection agencies for recovery actions or credit default listing

Ms Savage said that it was important that all areas of the energy market keep working together during this time.

“We will continue to work with market bodies, government and the sector to support all parts of the energy supply chain. We will strongly monitor the impact of COVID-19 on the market so together we can respond with the right solutions at the right time.”