Thousands of Aussies were overcharged—now rules are changing for good
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Power bills are a source of constant frustration—especially when they suddenly spike without warning or explanation.
Now, a major shake-up to the energy system is aiming to tackle this very issue, with regulators stepping in to rein in sneaky pricing tactics.
Here’s what the changes could mean for your household budget in the months ahead.
Power companies have long been criticised for luring customers in with attractive rates, only to hit them later with higher charges or hidden fees.
But a sweeping change to how energy retailers operate promised to shake up this business model—especially for vulnerable Australians.
Energy Minister Chris Bowen addressed the issue directly, saying too many people were being moved onto pricier plans or being charged fees they never expected.
He noted: ‘I’m not going to pretend that they’re a silver bullet, but clearly, the situation hasn’t been working.’
From next year, new regulations would come into play, aimed at giving households clearer and fairer billing. These reforms were part of broader efforts to simplify the electricity market, reduce confusion, and ensure people were getting the best possible deal—something that hasn’t been easy in a system riddled with complexity.
The changes, introduced by the Australian Energy Market Commission, would roll out in two stages—beginning on 1 July 2026 and continuing through to 30 December 2026. Among the key measures was a rule preventing power retailers from increasing prices more than once a year, a move designed to limit the surprise spikes many Australians had grown used to.
Excessive late payment fees would also be banned, and additional charges targeting vulnerable customers would be outlawed entirely. Retailers would be required to place eligible customers on their best available plan—a major shift in responsibility away from overwhelmed consumers and towards the providers themselves.
Bowen noted the importance of this change, explaining: ‘There are many, many Australians, either in hardship or not in hardship, who aren’t on their best possible plan. That’s not their fault. We need to make it as easy as possible for them to change.’
The update followed new research showing that around 40 per cent of Australians didn’t read their energy bill—something experts believed contributed to people being stuck on expensive plans without even knowing it.
The reforms also built upon Bowen’s earlier announcement at the Australian Energy Week conference in Melbourne, where he pointed to failings in the Default Market Offer. That pricing system was meant to set a benchmark and encourage competition, but instead, it hadn’t delivered the results intended.
He confirmed there would be changes to how the Australian Energy Regulator sets prices in New South Wales, South Australia and Queensland—bringing them more in line with Victoria’s model.
As energy prices continued to rise and market complexity remained a challenge, these rule changes marked a significant step toward restoring fairness in a system many Australians had lost confidence in. Whether they would be enough to stop the worst behaviours in the sector, however, remained to be seen.
If you've ever felt like your power bill is eating into more of your pension than it should, you're not alone.
There are some surprisingly simple tricks that can make a big difference—without needing to call in a tradie.
Watch the video below to see how other Aussies are slashing their energy costs from home.
Source: Youtube/9 News Australia
With so many of us keeping a close eye on every dollar these days, do you think these new rules will actually make your power bill easier to manage? Let us know your thoughts in the comments.
In a previous story, we looked at the early changes already underway in the energy market—shifts that offered some breathing room for households feeling the pinch.
For those living on fixed incomes, even small price adjustments can have a big impact on the monthly budget.
If you've been following how these reforms are rolling out, that piece is worth revisiting.
Read more: More breathing room for Aussies as changes to energy prices are underway. Here's what we know so far
Now, a major shake-up to the energy system is aiming to tackle this very issue, with regulators stepping in to rein in sneaky pricing tactics.
Here’s what the changes could mean for your household budget in the months ahead.
Power companies have long been criticised for luring customers in with attractive rates, only to hit them later with higher charges or hidden fees.
But a sweeping change to how energy retailers operate promised to shake up this business model—especially for vulnerable Australians.
Energy Minister Chris Bowen addressed the issue directly, saying too many people were being moved onto pricier plans or being charged fees they never expected.
He noted: ‘I’m not going to pretend that they’re a silver bullet, but clearly, the situation hasn’t been working.’
From next year, new regulations would come into play, aimed at giving households clearer and fairer billing. These reforms were part of broader efforts to simplify the electricity market, reduce confusion, and ensure people were getting the best possible deal—something that hasn’t been easy in a system riddled with complexity.
The changes, introduced by the Australian Energy Market Commission, would roll out in two stages—beginning on 1 July 2026 and continuing through to 30 December 2026. Among the key measures was a rule preventing power retailers from increasing prices more than once a year, a move designed to limit the surprise spikes many Australians had grown used to.
Excessive late payment fees would also be banned, and additional charges targeting vulnerable customers would be outlawed entirely. Retailers would be required to place eligible customers on their best available plan—a major shift in responsibility away from overwhelmed consumers and towards the providers themselves.
Bowen noted the importance of this change, explaining: ‘There are many, many Australians, either in hardship or not in hardship, who aren’t on their best possible plan. That’s not their fault. We need to make it as easy as possible for them to change.’
The update followed new research showing that around 40 per cent of Australians didn’t read their energy bill—something experts believed contributed to people being stuck on expensive plans without even knowing it.
The reforms also built upon Bowen’s earlier announcement at the Australian Energy Week conference in Melbourne, where he pointed to failings in the Default Market Offer. That pricing system was meant to set a benchmark and encourage competition, but instead, it hadn’t delivered the results intended.
He confirmed there would be changes to how the Australian Energy Regulator sets prices in New South Wales, South Australia and Queensland—bringing them more in line with Victoria’s model.
As energy prices continued to rise and market complexity remained a challenge, these rule changes marked a significant step toward restoring fairness in a system many Australians had lost confidence in. Whether they would be enough to stop the worst behaviours in the sector, however, remained to be seen.
If you've ever felt like your power bill is eating into more of your pension than it should, you're not alone.
There are some surprisingly simple tricks that can make a big difference—without needing to call in a tradie.
Watch the video below to see how other Aussies are slashing their energy costs from home.
Source: Youtube/9 News Australia
With so many of us keeping a close eye on every dollar these days, do you think these new rules will actually make your power bill easier to manage? Let us know your thoughts in the comments.
In a previous story, we looked at the early changes already underway in the energy market—shifts that offered some breathing room for households feeling the pinch.
For those living on fixed incomes, even small price adjustments can have a big impact on the monthly budget.
If you've been following how these reforms are rolling out, that piece is worth revisiting.
Read more: More breathing room for Aussies as changes to energy prices are underway. Here's what we know so far
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