Energy bosses are “on notice” from the federal government who says they must lower energy prices or be faced with tougher regulation.
Federal energy minister Angus Taylor told TICKY that if companies don’t do the right thing, they would “make them do the right thing.”
“We’ll be as heavy handed as we have to,” Taylor said in an exclusive interview with Ticky Fullerton.
The Federal Government had been campaigning to bring down energy prices in Australia as the cost of electricity and gas continues to soar to new heights.
Taylor delivered the ultimatum to energy bosses in talks on Wednesday, with an agreement reached to standardise comparison rates for all customers.
The minister said that a standard rate across the sector would make it less confusing for customers to understand what they’re being charged, forcing companies to compete for lower prices.
“They’re compared to different baselines, different reference prices,” he said.
“So, if I’m offered a 20 per cent discount from one company and a 25 per cent discount from another, I know the 25 per cent discount is a better price,” he said.
Taylor also said the so-called ‘loyalty tax’ will be gone by July 1 next year.
The ‘loyalty tax’ refers to the increase in energy costs customers sometimes get hit with when their initial contract rolls over.
“They trust their energy retailers to give them a fair deal,” he said. “I think that’s unfair. It’s particularly prevalent among small businesses.
“We want to see that gone… We’ve made it very clear to retailers that we will act as we have to, to make sure that happens.”
Watch the full interview with Angus Taylor above.