Electricity pricing is overly complex – consider if electricity retailers sold petrol then forecourt signs would look like.
Attempting to use a single figure to compare the above two prices is likely to result in the wrong decision. The complex pricing leaves consumers vulnerable to exploitation, for example offering attractive large discounts to hide other higher charges.
Australian regulators seem reluctant to simplify electricity pricing.
Consumers are able to use a number of retail tariff comparison tools. While these tools allow consumers to find the cheapest tariff they are notoriously difficult to use.
In this submission to the Australian Competition and Consumer Commission’s inquiry into electricity prices Dr Gill suggests minor modifications to consumer electricity bills intended to simplify the use of tariff comparison tools.
Copyright of this article remains with Dr Martin Gill. All references to this article should include the author’s name and website www.drmartingill.com.au.
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