The Australian Energy Market Commission (AEMC) has announced a series of important reforms that will improve transparency, limit price hikes, and provide stronger protections for small businesses and other energy users across the country.
These changes, driven by a request from Energy Ministers in 2024, aim to eliminate unfair practices in the energy market—ensuring businesses are no longer caught out by hidden fees, loyalty penalties, or unexpected price increases.
Price Increases Limited to Once Per Year
One of the biggest changes is that energy retailers will now be limited to increasing prices only once every 12 months on market retail contracts. For most, these changes will take place in July each year to align with broader industry updates.
This means greater cost predictability for businesses and a more stable outlook when budgeting for energy expenses.
Standing Offer Price Protection
If your business is on a market contract and the benefits expire or change, retailers can’t charge you more than the standing offer. This rule protects long-term customers from being penalised just for staying loyal to the same provider.
Unfair Fees Banned
The new rules also address late payment penalties and excessive retail charges:
- Unreasonably high fees for late payments will be banned.
- Retail fees for vulnerable customers will be prohibited altogether.
- For everyone else, fees must reflect reasonable and transparent costs only.
Stronger Support for Customers Doing It Tough
The AEMC recognizes that some businesses and individuals face barriers to switching or reviewing energy plans—whether due to financial stress, time constraints, or other challenges.
From 30 December 2026, energy retailers must ensure that hardship customers are not worse off than they would be on their cheapest available plan. Retailers will be given flexibility in how they deliver this support, but the onus will be on them to ensure it’s provided.
Making Better Offers Easier to Spot
In a draft ruling still under consultation, the AEMC is also proposing that retailers highlight better offer messages more clearly—not just on the bill itself, but also in cover emails and bill summaries.
Why? Research shows that up to 40% of customers don’t open their bills, which means they often miss out on deals that could save them hundreds each year.
The message from the AEMC is simple:
Don’t wait—check your energy bill. If there’s a better deal available, switching is quick and could save you money.
A Fairer Market for Everyone
For the first time, the AEMC has formally applied equity principles to its rule-making. This ensures that decisions don’t unintentionally disadvantage those less able to actively engage with the energy market.
“We’ve designed these reforms to make sure all customers—regardless of their situation—have a fair opportunity to benefit,” said AEMC Chair Anna Collyer. “That means removing structural barriers and eliminating unfair fees.”
Key Dates to Know
- 1 July 2026 – Rules limiting price increases and banning unfair fees come into effect.
- 30 December 2026 – Hardship customer protections begin.
- 31 July 2025 – Deadline for submissions on the draft rule to improve visibility of better offers.
- September 2025 – Final decision expected on improved switching visibility.
Need Help Reviewing Your Energy Plan?
If you’re not sure whether your business is on the best available energy plan—or haven’t checked in a while—we can help.
Our team can review your current rates, compare available offers, and assist with switching to a better deal if needed.
Contact us today to see how much you could save.
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Leading Edge Energy can help you secure stable, competitive rates so energy price spikes don’t affect your bottom line.
Let’s chat. Call us at 1300-852-770 or email us at info@leadingedgeenergy.com.au.
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