The Australian Energy Regulator (AER) has released a guideline that should help customers get better deals on their energy bills. 

The mandatory Better Bills Guideline requires energy retailers to tell their customers, through a quick glance at their power bill, whether they could be on a better offer, and how to switch.

Energy retailers in Queensland, New South Wales, ACT, South Australia and Tasmania will now implement the mandatory guideline in 2023.

The guideline will require a compulsory ‘better offer’ statement on the first page of the bill, under the heading “Could you save money on another plan?”.

AER chair Clare Savage says the new requirements are a key part of the regulator’s push to support consumers, especially those experiencing vulnerability, to understand and participate in the energy market, and make choices that are right for their individual circumstances.

“Over time, energy bills have become more complex and detailed, and our research revealed that this can reduce understanding and create confusion,” Ms Savage says.

“Our purpose as a regulator is to make energy consumers better off now, and in the future, and this new industry requirement for simpler energy bills goes to the heart of this.

“We’ve tested the bill requirements with more than 14,000 customers during our research, and had input from retailers, consumer groups, and energy ombudsman schemes.

“Our research told us that customers ‘would love to see if there was a different plan available that would potentially save [them] more money’ and that ‘bills should be precise, simple, accessible and understandable for everyone’. As one customer puts it, they would like a bill that is ‘uncluttered and easy to understand and gives a good picture of where the costs, discounts and credits are coming from.’

“We’ve listened and we have taken a tiered approach to information, restricting the amount of content allowed on the first page to ensure simple, clean design. At first glance, this will give customers the essentials and tell them whether they might switch and save. That’s a great outcome for consumers,” Ms Savage said.