door to door sales
As of next year, energy retailers cannot engage in sales-to-sales tactics such as this. Image – Canva.
  • Energy retailers will be subject to the ban
  • $1M fine will apply to energy retailers who wrongfully disconnect vulnerable users
  • 'Save' and 'win-back' promotional offers will be banned

The Victorian Government has today announced it will phase in a ban on energy retailers who engage in door-to-door sales of their products. Additionally, a penalty of up to $1 million will apply to energy retailers who wrongfully disconnect vulnerable users.

Lily D’Ambrosio, Minister for Energy, Environment and Climate Change, said the Energy Fairness Bill will protect households and businesses from aggressive and exploitative tactics employed by energy retailers.

“We are banning high-pressure sales tactics like unsolicited door-to-door sales and cold-calling to protect Victorian households from being taken advantage of by dodgy energy companies.”

“We’re putting energy companies on notice – if you have wrongfully disconnected households you will pay a penalty of up to $1 million.”

Lily D’Ambrosio, Minister for Energy, Environment and Climate Change

The announcement comes as earlier this month a solar energy equipment supplier was fined $3 million for applying aggressive and misleading sales tactics.

The $1 million penalty for cutting off vulnerable users is particularly designed to protect consumers who are on payment plans or need electricity for life support.

Gas and electricity licensees who submit false or misleading information to the Essential Services Commission are also subject to a $1 million fine.

As of 31 December 2021, electricity and gas retailers using what is described as ‘high-pressure sales tactics’ for retail contracts – including door-to-door sales or cold-calling – will be banned.

For solar businesses under the Solar Homes Program, door-to-door sales will be banned even earlier, on 1 September 2021.

Additionally, ‘save’ and ‘win-back’ promotional offers will be banned. This tactic often involves providing a consumer short-term discounts that may end up resulting in the cost running higher in the long run. By doing this, retailers stifle competition. The Victorian Government hopes by banning this practice, customers will be able to find the best price in the market in a transparent manner.

In a statement, the Victorian Government said the Bill will result in a fairer energy retail market. It added that since the last election, retail electricity prices have fallen by 10% and the number of disconnections had halved.



You May Also Like

Perth Design Week 2024’s program launches today, featuring expanded program and international collaboration

Perth Design Week 2024 unveils expanded program, featuring over 80 diverse events spanning exhibitions, talks, and installations.

Perth Design Week 2024: Perth’s best architects prove that smaller homes are in vogue

Perth Design Week 2024’s week-long itinerary of events, exhibitions and experiences promises a vibrant celebration of design excellence.

Top Australian downsizing locations revealed

Property Credit’s report reveals 12 locations across NSW, Queensland and Tasmania replete with opportunities for downsizers.

Revitalising urban jungles: University expert weighs in on why green spaces are the ultimate urban upgrade

Planning policies, funding disparities, and land constraints have exacerbated inequities in green space access in Australia.

Top Articles

Australia’s best in real estate: 2024 PropertyGuru Awards highlight innovation and sustainability

Discover the winners of the 7th PropertyGuru Asia Property Awards (Australia).

Why apartments are the smart choice for property investors in 2024

Apartment markets in Australia are emerging as leading investment option.

Finding Australia's cheapest properties with huge investment potential

Hotspotting share the undervalued locations likely to boom.