[VIC] Are Gas Retailers Allowed to Change/Increase Prices More than Once A Year?

DoctorCalculon on 03/07/2023 - 22:38
Last edited 03/07/2023 - 22:57 by 1 other user

Hey guys,

I am with GloBird Energy for retail gas supply, and have been with them for many years.

They increased prices at the start of the year, which is par for the course.

Below are your new energy rates which will take effect from 01 Feb 2023.

Just received an email about an hour ago with new (increased) rates:

Below are your new energy rates which will take effect from 01 Aug 2023.

So, have the rules changed recently which now allow certain retailers to adjust prices multiple times during the year?

According to GloBird themselves: https://www.globirdenergy.com.au/VicRates/

GloBird normally reset energy rates once a year.

From VIC Essential Services Commission (ESC) website:

Retailers are only allowed to increase prices once a year. For many customers, this will happen on a set date one month after network tariff prices change. Customers on fixed-price contracts will only experience any price increases on the anniversary of their initial fixed-price period expiring.

I get that wholesale prices for both gas and electricity have increased dramatically recently.
But at the same time, has ESC changed the rules which now allow retailers to adjust prices multiple times during the year?

Related Stores

GloBird Energy

• 

  jjjaar on 03/07/2023 - 23:02

  There are two situations where retailers can increase prices more than once a year:
  •if the retailer’s product qualifies for a standing exemption, which are specified in the Energy Retail Code, or
  •if an exemption has been granted by us following an application from a retailer.

  Or

  Retailers are also permitted to pass on price increases in the following circumstances:
  •retailers can increase market contract prices outside of the usual 12 month cycle if an uncertain or unforeseen event occurred that was sufficiently significant that it caused the commission to vary a Victorian Default Offer price determination
  •retailers can pass on the effect of a network tariff reassignment to a customer at any time (as long as the tariff increase does no more than give effect to that reassignment) and excludes contracts for multi-site premises from the once-a-year price increase rule.

  https://www.esc.vic.gov.au/electricity-and-gas/prices-tariff…

• 

  deva5610 on 03/07/2023 - 23:03

  +1

  I can't answer your question except to say that page from the ESC also lists some exemptions and situations where a retailer can alter prices more than once a year.

  The first GloBird gas tariff I looked up says - "Prices are not fixed - We may update your rates from time to time. However we'll always notify you in writing prior to any change"

  So if yours is the same, I'd be guessing that's why. It's not a fixed rate so can be altered outside of the once a year cycle.

• 

  dasher86 on 04/07/2023 - 09:20

  The VDO changed

• 

  Manny Calavera on 06/07/2023 - 09:36

  Anyone got a favoured retailer with a low daily charge, or am I just going to stay put?

  • 

    clover on 06/07/2023 - 12:09

    I am in the same boat. I will wait after 1 Aug to do price comparison

  • 

    bloomer on 09/07/2023 - 11:49

    It depends a lot on your area. But for me, I've just done the comparisons very carefully and even with Globird's increase, Globird still works out cheapest for me in my area for gas once (1) pay-on-time discount and (2) the absence of a credit card surcharge are taken into account. Wasn't the case for electricity, so I've now got separate gas/elec providers.