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Deregulation And You



What is Deregulation?

Deregulation in Australia is also known as Full Retail Competition (FRC).
FRC is when the government changes the rules of business to encourage competition and help reduce prices. This process now gives you the choice of who you get your gas and electricity bill from. Your energy supply and service does not change, but the company who gives you your bill and how much you pay is now your choice.

How deregulation works



1. Power Station - Energy is created at powerstations from fossil fuels and renewable resources.
2. The National Grid - Energy is delivered to the national grid, which is administered and operated by NEMMCO.
3. Substation - High voltage electricity is stepped down at a substation to allow it to be distributed to end users.
4. Local electricity company - Your local distributor is responsible for the wires, poles, meters as well as the general maintenance and safety of the distribution network.
5. Households - You of course! With deregulation this is the only change that will affect you. Electricity is supplied to your household and you pay the company you have chosen.


When did all this happen?

In 2002, FRC was introduced in NSW and Victoria for electricity and gas customers and in the ACT for gas customers.
The ACT introduced FRC for electricity customers in, 2003, at the same time South Australia began electricity and gas deregulation.
As of July 2007, Queensland households are now able to choose who supplies their gas and electricity bill.
 

What are my options? 

You have three choices when FRC is introduced in your area: 
* do nothing and continue to be supplied by your existing retailer
* enter a new arrangement with your existing retailer
* enter a new arrangement with a new retailer
 

Deregulation is intended to give the customer more control over who they pay and how much they pay for their household energy. Everybody needs to be able to make the right choice when it comes to selecting their energy provider.

Switching online  

Switchselect.com provides a safe, user friendly and secure way to compare your energy bills and switch retailers without the pressure of door to door salesmen or the disruption of telephone marketers.

What happens next? 

After you switch supplier today, we will confirm your selection and your 10 day cooling off period will begin. Your current retailer is notified, your meter is read as per normal, then and you receive one final bill from your current company. After that you will be with your new company, and be better off.




Need further information or confused about energy terms? Click here to read our Jargon Buster.

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