AEMC Puts Consumers First in New Draft Energy Rules

Fairer Energy Market for All

The Australian Energy Market Commission (AEMC) has proposed two new draft determinations aimed at making the retail energy market fairer, more transparent, and supportive, especially for vulnerable consumers. AEMC Chair Anna Collyer emphasized that these changes will ensure households can trust their energy plans and receive necessary financial support.

Better Support for Hardship Customers

The first draft rule focuses on protecting hardship customers, ensuring they are not financially disadvantaged if they fail to switch to better plans. It places more responsibility on retailers to assist vulnerable consumers while improving reporting and transparency for regulatory oversight.

Boosting Consumer Confidence

The second draft rule consolidates four rule change requests into a single process aimed at strengthening consumer trust in retail energy plans by:✔️ Preventing loyalty penalties – Consumers won’t pay more than the standing offer price when their benefits expire.✔️ Eliminating high late payment penalties – Retailers must remove excessive charges for overdue bills.✔️ Limiting price hikes – Energy prices can only be increased once every 12 months for retail contracts.✔️ Reducing unfair fees – Vulnerable consumers are exempt from extra charges, while fees for others must be reasonable.

A Stronger Equity Focus

AEMC is prioritizing energy equity, ensuring all consumers can fairly access and benefit from the energy system. The proposed rules address structural barriers, such as unfair conditional discounts that disproportionately impact those struggling with financial constraints.

Next Steps

🔹 The AEMC is seeking stakeholder feedback on both draft determinations until 8 May 2025.🔹 If approved, the new rules will take effect from 1 July 2026, allowing retailers time to adjust.

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