The Australian Energy Regulator (AER) has completed a compliance review following the full implementation of the Better Bills Guideline (Version 2). This Guideline provides essential instructions for retailers on how to prepare and issue bills that help small customers understand and pay for their energy usage. Retailers are required to comply with the Guideline under rule 25(1) of the National Energy Retail Rules (Retail Rules), a tier 3 civil penalty provision.
Key Compliance Activities
Since the Guideline’s implementation, the AER has undertaken several compliance activities, including:
- A compliance assessment of post-implementation bill templates for all retailers.
- Assessing self-reported breaches from retailers regarding contraventions of the Guideline.
- Regular engagement with retailers to address queries related to the Guideline.
- Ongoing monitoring of key intelligence sources, such as energy Ombudsmen, consumer intermediaries, and small customers.
Key Findings
The AER review identified several areas of non-compliance, particularly concerning the implementation of the Better Offer message and the inclusion of required information. Retailers were found, inter alia, to be:
- Incorrectly implementing the Better Offer message by omitting or altering the prescribed wording.
- Failing to include mandatory Tier 1 and Tier 2 information, such as links to the Energy Made Easy website and government energy rebate messages.
- Including unnecessary information within Tier 1 or Tier 2 sections, such as retailer operating hours or disclaimers.
Ongoing Compliance Focus
Compliance with the Better Bills Guideline will remain a priority for the AER in 2024-2025, particularly regarding the Better Offer message. Given the current cost of living concerns, it is critical that the Better Offer message is accurate and prominently displayed on small customer bills. The AER will continue to monitor compliance closely and may conduct further reviews of the calculations underlying retailer Better Offer messages later this financial year.
You can access the AER’s letter to retailers below:
