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We've come to a point where the energy market seems to have us where it wants us. 

Consider the following: The business models of energy retailers depend on customers scooping up cheap energy offers and sticking with them even as the prices continually rise – the notorious loyalty tax. At the same time, retailers make it difficult to shop around for a better deal. 

Even if you find one, the prices could easily go up in a matter of months. Then your retailer may just roll out a cheaper offer – perhaps with the same name as the plan you're on – to lure in a new batch of customers. 

Many of us have simply given up trying to find the best deal in this wilderness of confusion. 

A recent survey by the advocacy group Energy Consumers Australia (ECA) found that about four out of 10 of us hold negative views about electricity providers. We feel we're being taken advantage of. 

Meanwhile, more than eight out of 10 Australians are seriously worried about the cost of electricity, and most of us think the high prices are unreasonable and unfair, according to the latest ECA research. 

It shouldn't be this hard to know if you're getting ripped off on your energy bill

ÐÓ°ÉÂÛ̳senior campaings and policy adviser Jordan Cornelius 

The findings align with national ÐÓ°ÉÂÛ̳surveys, where energy costs have often topped the list of consumer concerns. 

"We've heard from many consumers that feel worn out by the confusing and time consuming process of looking for a better deal on energy. It shouldn't be this hard to know if you're getting ripped off on your energy bill," says ÐÓ°ÉÂÛ̳senior campaigns and policy adviser Jordan Cornelius. 

The most recent attempt to rehabilitate the retail market came in March from the Australian Energy Market Commission (AEMC), which proposed some new rules to protect energy customers from manipulative pricing tactics. 

Increases limited to once a year 

One recommended change is that energy retailers won't be able to increase rates in market contracts (where the customer chooses a specific plan rather than passively accepting the standing offer) more than once a year. This would come into effect in July 2026, providing a measure of pricing stability for about 90% of energy customers.  

"By limiting retail energy price increases to once per year – which for most customers would fall in July to align with regular industry updates – we're ensuring Australian households can better predict their energy costs and avoid unexpected price rises throughout the year," says AEMC chair Anna Collyer. 

Such a change won't prevent retailers from coming up with new cheaper offers once you've signed up, but it will put the brakes on multiple price increases. 

We're ensuring Australian households can better predict their energy costs and avoid unexpected price rises throughout the year

AEMC chair Anna Collyer

 "We think this is a very overdue, much needed reform," ECA general manager, community, Kerry Connors tells CHOICE. 

Luring customers in with an attractive offer and then raising prices a few months later has more or less become standard procedure for retailers, Connors says. 

"This change should give consumers more certainty that the price they sign up for is the price they'll pay, and for how long – but there are many other forms of loyalty penalties in the energy market that it won't address," Cornelius says. "Energy is an unavoidable essential cost, and there's a lot more that needs to be done to make sure people are getting a fair deal."  

A survey by the advocacy group Energy Consumers Australia found that about four out of 10 Australians hold negative views about electricity providers.

New loyalty tax protections 

When the benefits in your contract expire or change but you're still on the contract, the AEMC has also proposed that retailers won't be able to punish you for your loyalty by jacking up your rates. Instead, they'll be restricted to charging no more than the regulated standing offer price. That wouldn't be the best offer available, but it would undoubtedly be better than what you would pay without these reforms.  

ECA supports the rule change, but Connors acknowledges that "there's no easy solution to this. It's something we will monitor to see how it rolls out in the market. Customers still need to shop around, because there's likely to be a better offer available. But it does stop retailers from taking advantage of customers not engaging in the market by gradually increasing prices."

Fees and charges are often loaded onto a bill that weren't visible to the customer when they signed on to the offer

ECA general manger, community, Kerry Connors

The AEMC is also calling for a ban on unreasonably high penalties for late payment and other sneaky charges you probably wouldn't know about unless you put your contract under a high-powered microscope. 

"Fees and charges are often loaded onto a bill that weren't visible to the customer when they signed on to the offer," Connors says. "They could be fees for exiting the contract early or for late payments or for the way you pay your bill. This rule change gives the customer certainty that the fees they signed on to at the beginning of the contract are the fees they're going to pay over the life of that contract." 

New protections for hardship cases 

Also on the table are new protections for hardship cases. These would require retailers to provide cheaper plans to people in financial straits when their current plan expires, rather than rolling them over to a comparatively expensive plan. 

Connors says this proposed rule change is particularly timely. 

"People are telling us they're in financial stress," Connors says. "And there's a growing cohort in higher income brackets as well. The cost of electricity along with other cost-of-living pressures just means that household budgets are under real strain. People are really feeling pain at the moment." 

ECA estimates that around 15% of energy customers are under financial stress, but only about 1.5% have entered a hardship program, which energy retailers are legally required to provide. 

The cost of electricity along with other cost-of-living pressures just means that household budgets are under real strain

ECA general manager, community, Kerry Connors

The details of the rule change are complicated, but the intent is straightforward. "The customer has to be paying the least possible amount while they're in the hardship program," Connors says. "And so the definition of a better offer will be whatever delivers that lower cost to them." This would presumably exclude, for instance, cheap offers with pay-on-time discounts that become very expensive if you don't pay on time. 

The proposed change comes in the wake of a review by the Australian Energy Regulator announced in May last year that's focusing on whether hardship protections are working.

Consumer trust in decline 

ECA research from June last year revealed that consumers trust energy companies less than supermarkets and banks. Connors says it's a longstanding situation. 

"Trust has been a problem in this sector over the last 10 years we've been running our Consumer Energy Report Card survey. The market makes it too difficult for people to find out whether or not there might be a better offer. People are confident in their ability to make a decision, but they don't feel they've got the right advice, information or tools." 

It's a difficult market, but consumers who don't engage with it are generally worse off than those who do. ECA recommends that energy customers contact their retailers and ask whether they're on the best plan available. If it's time to switch, the federal government's isn't a perfect tool, but it is a useful one. 

 "A high percentage of people are paying more than they need to," Connors says. 

Stock images: Getty, unless otherwise stated.

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