Sunita SomvanshiAustralians will soon spot something new on their power bills – a message showing if cheaper plans exist with their current provider. The Australian Energy Market Commission (AEMC) has approved a rule requiring retailers to display “better offer” information prominently in bill communications, with parts commencing July 1, 2026, and hardship protections starting December 30, 2026.
Many customers don’t know they’re paying extra just by staying loyal. ACCC data shows disengaged customers, particularly those on legacy plans, often pay significantly more than those on newer offers.
For flat-rate plans older than two years, this jumps to 16.9% more – roughly $317 extra each year.
“This final rule is like placing important price information on the shopfront, making it clear, up-front and hard to miss,” AEMC Chair Anna Collyer explained when announcing the change.
The key improvement is visibility. Currently, better offer information might be buried in PDFs you never open. Under the new rule, retailers must present the message in cover emails, bill summaries and on first-page bill content as required by AER guidelines.
Retailers must compare your current plan against others they offer based on your actual usage data. This matters especially for homes with solar panels or time-of-use tariffs, where a simple price comparison might be misleading.
Comparisons must use historical usage; solar exports and complex TOU structures affect calculations and are treated carefully in the guidelines.
You won’t see better offer messages on bills covering multiple sites or if you’re already on the retailer’s best available offer.
People on hardship programs get additional protection. AEMC rules strengthen protections so retailers must ensure hardship customers are no worse off than the retailer’s deemed better offer and must proactively assist them.
Energy retailers have expressed mixed reactions. Some industry stakeholders have raised concerns about implementation costs, though specific submissions are not detailed in available sources.
The rule comes with enforcement powers – the AER enforces compliance under the existing penalty framework, which can include infringement notices and civil penalties for retailers who fail to present better offer information correctly.
What You Can Do Today:
- Check your plan age – if it’s over 12 months old, you’re likely paying too much
- Visit Energy Made Easy to compare offers based on your actual usage
- Watch for conditional discounts that expire after a “benefit period”
- For solar or complex tariffs, ensure comparisons use your specific usage pattern
- Call your provider and directly ask: “Am I on your best available offer for my usage?”
Not everyone has easy email access or digital literacy skills. The AEMC acknowledges this gap, noting paper bills will need clear messaging and some customers may require additional support.
Research from the Department of Prime Minister and Cabinet shows clear messaging with direct action prompts significantly increases switching rates.
DMO and market offer changes have varied by state and over time. For precise state information, check the AER’s DMO determinations and ACCC market monitoring for your specific region.
The AEMC rule is now final, but the AER must develop detailed guidance on presentation requirements. This consultation process is underway.The rule requires retailers to display better-offer messaging in communications that accompany bills; the AER will issue guidance on presentation; ACCC data shows customers on older offers pay more; industry submissions note practical concerns.
