Industry welcomes Victorian Government decision on flexible pricing

A number of industry players have welcomed the Victorian Government’s decision to introduce voluntary flexible pricing in 2013.

Energy Supply Association of Australia (esaa) CEO Matthew Warren said it is an important step forward in cutting power bills. “This new deal will empower Victorian households, giving them more control over their bills, more choice and the ability to reduce power bills by being smarter with the way they use energy,” he said.

Warren said the move towards flexible pricing means the energy industry can encourage consumers to reduce energy use on the hottest day of the year. “Relieving summer peak demand will save billions of dollars of investment in infrastructure that is rarely used, taking some of the pressure off household bills,” he said.

The idea that flexible pricing will help deal with peak demand issues was echoed by several other industry bodies. TRUenergy’s Group Executive Manager, Retail, Adrian Merrick said, “Apart from helping customers manage their bills better, flexible pricing will also be critical in helping Victoria tackle peak demand, which leads to increased costs in delivering power to the home.”

Smart meter company Jemena also welcomed the decision, saying the smart meter technology will help millions of Victorians reduce their power bills.

“Jemena is also playing an additional role by helping smart meter customers make the most of today’s announcement and to take the guesswork out of retail offer switching by offering them free access to our web portal called Electricity Outlook,” said Shaun Reardon, Acting Manager of Jemena.

“With this portal, smart meter customers can better understand and better manage their consumption. The portal enables users to work out how much they could save by switching retailers so it helps them choose the retail offer that best suits their consumption patterns.”

Reardon said he anticipates smart meter users are likely to reduce their peak demand once they realise how high energy costs are in peak periods.