Increase to cap on discounts for paying energy bills on time (Victoria)

Increase to cap on discounts for paying energy bills on time (Victoria)

AU Energy Compliance
The Essential Services Commission has increased the amount energy retailers can charge Victorian customers who do not make their payment on time to 5.71 per cent.  The cap applies to ‘pay-on-time’ discounts that are conditional upon the customer paying a bill on or before the pay-by date.  Each year the commission sets the maximum Victorian energy consumers can be charged for being late with a bill payment. The new cap, applying to contracts commencing on or after 1 July 2022, rose from 3.1 per cent to 5.71 per cent due to a significant increase in the debt risk premium being carried by energy retailers. The increase in the cost of debt is driven by local factors and global factors, including rising inflation, increasing interest rates and global supply-side restrictions due to the war…
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