Do you receive a pay on time discount? They sound like a really great thing for consumers, but they’re actually a way for power companies to charge large late payment fees and many people are getting caught out.
New research from the ACCC has found that one in four customers failed to meet the conditions to receive their pay on time discount and this means they’re slugged with one of these fees. This increases to nearly 60% for customers in financial hardship who struggle to pay their bills.
The federal government is submitting changes to the Australian Energy Market Commission so that power companies are unable to do this in future, however these changes will not apply in Victoria because there are different energy rules.
At DC Power Co, we think this practice is unacceptable. We believe companies should offer the same transparent pricing plan for all customers, regardless of when you pay.
It’s important to be aware of pay on time discounts when you sign up with a new power company. Know the rates and the discounts so you know if you might be slugged with a higher power bill than you were expecting.