FAMILY FIRST – ELECTRICITY PRICE RISES MORE FOR THOSE ON CONTRACTS

For further information contact: Dennis Hood on 8237 9362 or 0448 887 900
FAMILY FIRST – The Independent Party
ELECTRICITY PRICE RISES MORE FOR
THOSE ON CONTRACTS
Monday 23 July 2012
Dennis Hood has spoken out about some electricity consumers who face rises of
around 21% under “discount” contracts when the standard increase is “only” 18%.
“The Essential Services Commission has made a decision that rises for those on the
standing contract will be fixed at 18% from 1 July. However, only 25% of electricity
users are on the standing contract. The rest have agreed to a particular plan because
they were offered “discounts” by retailers. A significant number of people have
complained to me that they have been told by their retailer that prices will rise by around
21% under what are supposed to be discounted contracts”, Mr Hood said.
“It seems unfair to me that the retailers can raise prices to anything they decide, and the
consumer simply has to pay. Many of these consumers are on a 2 year contract that
has a penalty if they go to another retailer. They have no choice but to pay the new
rates. Some consumers have negotiated a discount, which is now being eaten away.”
“I am looking at the provisions about unfair contract terms in the Competition and
Consumer Act 2010, which is federal legislation. It provides in Schedule 2, sections 23
to 25 that a standard form contract provision can be unfair and void if it permits one
party, but not the other party, to vary a term of the contract. I would regard the price to
be paid as a term of the contract.”
“Rises in standard prices for electricity, gas and water have been out of all proportion to
the CPI in recent years. It seems unfair if the rises are even steeper still for some
consumers. I have introduced a bill to give parliament the power to disallow rises if they
are more than twice CPI. Family First is determined to stop these ridiculous rises from
continuing in the future. Many people simply cannot afford them. I have heard from
pensioners who cannot afford to heat their houses in winter any more. We must take
action to limit these rises.”
MEDIA RELEASE
HON DENNIS HOOD MLC
HON ROBERT BROKENSHIRE MLC
FAMILY FIRST
The Independent Party