Understanding Energy Retail Contracts and Retailer Obligations

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Types of Energy Retail Contracts

Energy retail contracts are agreements between an energy retailer and a customer outlining the terms and conditions for the sale and supply of energy. There are primarily two types of contracts:

  1. Standard Retail Contracts: These contracts are set out by law and offer basic consumer protections. The terms and conditions, including prices, are regulated and cannot be altered by the energy retailer.
  2. Market Retail Contracts: These contracts are more flexible and may offer discounted rates, renewable energy options, and other incentives. The terms and conditions, including prices, are set by the energy retailer and may vary.

Obligations of Energy Retailers

Energy retailers operating in NSW, QLD, ACT, SA, and TAS have a range of obligations under the National Energy Retail Rules (NERR) the Law and the various applicable Guidelines, which are designed to protect consumers. Some of these obligations include:

  1. Contracting: Retailers must provide all relevant information to a customer prior to entering into a contract. This includes details about tariffs, charges, contract duration, and termination conditions.
  2. Disclosure: Retailers are obligated to provide customers with clear and accurate information about their energy contract. This includes the provision of a summary of the contract, details about prices and charges, and information about a customer’s rights and obligations.
  3. Billing: Retailers must issue bills to customers at least once every 100 days for standard retail contracts. Bills must be based on actual meter readings or estimates and must clearly outline how the billed amount was calculated.
  4. Providing Information: Retailers must provide a range of information to customers. This includes information about government-funded energy charge rebate, concession or relief schemes, details about historical energy use, and information about the retailer’s standard complaints and dispute resolution procedures.
  5. Complaints and Disputes: Energy retailers are required to have standard complaints and dispute resolution procedures in place. They must handle customer complaints in accordance with these procedures and inform customers about the outcome of their complaint.
  6. Interruptions to Supply: Retailers are obligated to inform customers about any planned interruptions to their energy supply. They must provide this information as soon as practicable and restore supply as soon as possible after the interruption.


Understanding energy retail contracts and the obligations of energy retailers is crucial for both retailers and customers. Energy retailers are obligated to provide clear and accurate information about contracts, handle customer complaints effectively, and inform customers about any planned interruptions to their energy supply. Customers, on the other hand, should understand the terms and conditions of their energy contract and their rights and obligations under these contracts.

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