DON'T GET CAUGHT IN THE DARK
24 January 2009
Patrick Lion
QUEENSLAND households are being warned to check their electricity contracts amid increasing concern some deals may be set to rise due to soaring costs.
Full retail competition was introduced into southeast Queensland in mid-2007, with customers given the opportunity of changing retailers from the then single provider Energex.
The changes have produced 10 retailers selling household electricity in the region after the first 18 months of the new regime.
Retailers essentially offer two different types of products for household use -- standard contracts and market contracts.
Standard contracts are fixed at the uniform tariff of 14.81/kWhr.
Market contracts include term lengths and while retailers do not have to stick to the set rate, competition is supposed to keep prices low.
The only way to exit a market contract is to pay a break fee. Customers can then search for a better price.
The alternative is to wait for the contract term to expire.
Amid predictions that market contracts may become more expensive as costs for power firms soar, Energy Ombudsman Barry Adams yesterday said customers should be checking what deal they were on and its conditions.
``If people are happy on the standard contract then they should stay there,'' Mr Adams said.
``Given that 500,000 people have moved on to market contracts and they are not all complaining, some must be getting a benefit, so they can be good, too.''
Prices of different retailers can be checked at the Queensland Competition Authority website, www.qca.org.au
The Courier-Mail
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