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With the introduction of competition in the energy market on 1 January 2002, householders can choose the company(s) they want to buy their electricity and gas from. This means there are a number of issues regarding your energy supply you should consider if you are planning to move house.
Do I need to change my retail supplier?
That depends on whether you want to: (1) accept the terms and conditions offered by the area's standard energy supplier, or (2) negotiate a contract with the existing or new company.
1. Requesting a standard supply contract
If you have a standard supply contract and move to premises within the area your retailer supplies energy to, you do not have to change company. However, you must apply for a standard form supply contract with the same retailer for your new premises.
If you move to another retailer's supply area and wish to remain on a standard contract, you will need to switch to another company. You must apply for a contract with the supplier who provides energy to your new area. The price and services offered by the new company may be different from the previous company. However your prices will still be regulated by the Independent Pricing and Regulatory Tribunal (IPART).
If you were under a negotiated supply contract at the previous premises, then your options depend on the terms and conditions of that contract.
2. Choosing to negotiate a supply contract
If you are on a standard contract with the area's retail supplier and you move to premises within the same supply boundary, you may enter into a negotiated contract either with your old supplier or a new supplier. The price under the negotiated contract will not be regulated. No supplier is obliged to offer you a negotiated deal.
If you were under a negotiated supply contract at the previous premises, then your options depend on the terms and conditions of that contract. If the contract allows for supply to be transferred to new premises on the same terms or different terms, you do not have to change retailer. In fact, your contract may oblige you to stay with that retailer until the contract expires or is terminated.
If the contract may be terminated in accordance with terms and conditions contained in the contract and agreed to when you signed up, then you have two choices:
- Renegotiate a contract with the supplier with whom you had the previous contract (in which case you do not have to change retail supplier); or
- Negotiate a new contract with a new retailer of your choice.
Paying a security deposit
You may need to pay a security deposit when you establish a new gas or electricity account for your new premises. The amount will depend on the retailer or, in the case of negotiated contracts, what you agree to.
In some cases, the security deposit is refunded after a period of time. It may be held and deducted from your final bill when you move premises. If the security deposit is greater than the final bill, the balance may be refunded to you.
Notifying your energy company
You should provide your retail supplier with three days notice (for gas, 3 business days) of moving to avoid paying for any electricity or gas used at the premises after you leave. If you don't, you will be liable for electricity used up to three days after notification (or for gas, 72 hours).
Finalising your contract
You have fourteen days from the day you move into your new home to sign a contract with the electricity supplier of your choice and have the contract made effective from the day you move in.
If you have not entered into a contract with a supplier, you are considered to have agreed to pay charges as soon as you start to use gas or electricity in your new home. The arrangement will be with the supplier who supplied the former occupant.
If you do not enter into a contract for either electricity or gas, the price is determined by the retailer in accordance with the Government's regulation.
Making new connections
A new connection will only be necessary if your new house has never been connected to the electricity or gas network. Contact your preferred retail supplier to arrange for the gas to be connected. For electricity, contact the area's network service provider or another accredited service provider to arrange connection.
The capacity of the existing electricity or gas network may need to be upgraded before you can be connected. This is only likely to occur in some rural areas.
You may be required to contribute to the cost of the upgrade, however you can ask either the electricity distribution network service provider or another accredited service provider to carry out this work. Some retail suppliers might offer to arrange this for you.
In the case of gas, your retail supplier will arrange an authorised company to make the connection.
Want more information?
A free booklet explaining the choices available to you will be in your letterbox in early 2002. The booklet will contain information you will find useful if you decide to shop around for the best deal on your energy.
You may also call our information line on 1300 136 888.
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