Victorian regulators have gone where the Australian energy market rule maker has declined to tread, with the state announcing it will become the first in the country to ban the energy retailer “loyalty tax” – an insidious practice that largely affects vulnerable customers.
Victorian energy minister Lily D’Ambrosio said on Thursday that energy retailers in the state will be banned – effective immediately – from quietly ratcheting up the prices charged to long-term customers who originally signed up to much lower prices or a specific offer.
“The ‘energy retailer loyalty tax’ business model is when energy companies lure customers in with low-priced offers. But often over time, these prices are increased by energy retailers hoping you won’t notice,” a statement says.
“It’s a predatory business model that hits some households harder than others.
“Too often, busy working families, older people, migrants, people without the time or ability to check they’re on the best deal are worse off.”
