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Consumers | The law handbook - Legal Information Access Centre

Consumers | The law handbook - Legal Information Access Centre

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11 <strong>Consumers</strong> 363Energy contracts[11.240] Opening and closingaccountsIt is important for customers to open anenergy account when they move into a newproperty and to close the account whenmoving out, to avoid paying for the energyuse of others. A security deposit may becharged on the opening of a new account(see Security deposits at [11.270]).[11.250] Types of contractsWhen opening an account, energy customersare entitled to choose between thefollowing types of contracts for their energyservices:• A standard retail contract with standingoffer tariffs which are set by the retailer,and standard terms and conditions (seeSchedule 1 of the NERR)• A standard retail contract with an agreedretail price approved by the IndependentPricing and Regulatory Tribunal (IPART),and standard terms and conditions (gasonly)• A market retail contract with competitivetariffs and terms and conditions that mayvary from contract to contract.Retail electricity prices were deregulated inNSW from 1 July 2014 and regulated tariffsare no longer available. Retail gas prices aresubject to voluntary retail pricing that areagreed to between IPART and the local arearetailer (see below), and are also known as“regulated offer prices” (NERL, s 37C).All retailers must have a standing offer,which gives domestic and small retail customersthe automatic right to supply (seeNERL, s 22 – 32). Small retail customers arethose who consume less than 100 megawatthours (MWh, which is 1,000 kilowatt hours)of electricity per year or less than 1 terajoule(TJ, which is 1,000,000 megajoules) of gasper year (National Energy Retail Law (Adoption)Regulation 2013 (NSW), cl 4(1)).Where the customer is opening an accountat a site without a previous connection, theyhave an automatic right to supply from thelocal area retailer for the relevant geographicalarea (NERL s 2 definition of “designatedretailer”).<strong>The</strong> local area retailers for electricity are:• Origin Energy for premises in EssentialEnergy and Endeavour Energy’s networkareas• EnergyAustralia for premises in Ausgrid’snetwork area.<strong>The</strong> local area retailers for gas are:• Origin Energy for premises in Envestraand Central Ranges Pipeline’s networkareas• AGL for premises in Jemena’s networkarea• ActewAGL Retail for premises inActewAGL’s network area (National EnergyRetail Law (Adoption) Regulation 2013,s 5).<strong>The</strong> local area gas retailers must offer bothstanding and regulated pricing offers tocustomers (NERL, s 37C(9)).Where the customer is opening an accountat a site where there is an existingconnection, they have an automatic right tosupply from the retailer who currentlysupplies the site (NERL, s 2 definition of“designated retailer”).Alternatively, customers may be offered amarket retail contract by an energy retailer.Under a market retail contract, the quality ofenergy supply will not change but thesecontracts generally offer different terms andconditions from the standard contract andsometimes bind customers to set periods(usually two or three years) or benefits.Administrative and penalty fees may becharged in certain circumstances or if contractterms are broken, usually by earlytermination of the contract. Some retailersoffer “dual fuel” contracts which includeboth electricity and natural gas.

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