The NSW Independent Pricing and Regulatory Tribunal (IPART) has released its draft report on the maximum amounts for early termination fees to commence on March 1, 2014. This will limit the fees that retailers can charge customers for breaking their electricity supply contracts early.
Under the draft decision, the maximum fee that retailers can charge electricity customers who terminate their market contract early will be:
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$130 within 12 months of the date of first supply, and
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$45 thereafter (until the end of the contract) plus, the payback of any upfront inducement costs.
IPART Chairman Dr Peter Boxall said the draft decision reflected reasonable cost recovery for retailers, ensuring all consumers do not end up footing the bill for those customers who choose to terminate their contract early.
Submissions are due by November 18, 2013.
IPART is also holding a public hearing on Monday November 4 at their office in Sydney where you can now register your attendance.
