Switchwise.com.au Blog

Archive for November, 2010

Door knockers curtailed by new Australian Consumer Law

Tuesday, November 30th, 2010

Consumers across Australia should be looking forward to a happier new year. From 1 January 2011, Australia will introduce a single, national consumer law -the Australian Consumer Law (ACL). The ACL makes a number of significant changes to unify and tighten consumer rights across all States and Territories of Australia. Of particular interest to us are the changes relating to door-to-door sales as this is a practice aggressively pursued by many energy retailers.

Under the new law, a sales person will not be permitted to knock on your door on Sundays or public holidays, before 9am or after 6pm on week days or before 9am or after 5pm on Saturdays. This new law will have the greatest impact in NSW where door knockers are currently able to annoy you (or sell to you) up to 8pm seven days per week. In Victoria, South Australia and ACT door knockers can currently visit up to 8pm on weekdays so from 1 January you should be able to enjoy your dinner in peace. Queensland residents have already been benefiting from the most restrictive door selling times in the nation and the new laws reflect the standards set in Qld.

It will be interesting to monitor whether these new laws actually result in less door knocking activity by energy retailers and others or whether it will result in more concentrated activity over a shorter time period. If you are a person usually at home during the day then you might actually be worse-off. However, those of you working 9 to 5 should enjoy a peaceful existence.

Over the 32 days remaining until the ACL takes effect, we expect to see a burst of door knocking activity as companies scramble to get as many new customers as they can. This will likely be most acute for NSW residents given that the selling hours are to be reduced the most.

Unfortunately, telemarketing hours have not been reduced in line with the new door knocking hours – this can still be done until 8pm on weekdays and until 5pm on Saturdays. As a result we might expect to see more calls being made to consumers to make up for any shortfalls from door knocking. At least you have some control here – simply register on the Do Not Call Register to avoid irritating sales calls.

We take this opportunity to give one simple piece of advice to all of you – never make a decision at your front door or on the phone. Always ask for an offer in writing, which you can review at your leisure, before making any decisions to enter into new contracts with energy companies or anyone else for that matter. And don’t agree to something just to get rid of a pesky sales person – it’s not worth the hassle. If you don’t take our advice at least remember that by law you have a 10 business day cooling-off period to cancel.

If you are interested, you can read more about the new law on the Australian Consumer Law Website.

NSW Govt slashes solar feed-in tariff by two-thirds

Friday, November 5th, 2010

The NSW Government last week completed its statutory review of the Solar Bonus Scheme, under which customers were paid 60 cents for each kilowatt hour (kWh) of electricity they fed back into the electricity grid from their home installed solar photo-voltaic cells. Customers installing new solar PV systems after 27 October will only be entitled to receive 20 cents per kWh instead of the previous 60 cents – a massive reduction of 67 per cent.

Customers who have already connected PV systems by 27 October will not be affected by the tariff change and will be entitled to keep receiving the higher 60 cents tariff. However, the NSW Government has introduced a cap on the Solar Bonus Scheme – a total capacity of 300 megawatts (MW) – after which new customers installing solar PV systems will no longer be entitled to receive any bonus payments for feeding solar generated power back into the grid.

The Government is putting a positive spin on taking the knife to the Scheme, saying that the change “reflects the substantial fall in PV system purchase costs over the past twelve months and also takes account of the generous support provided through the Commonwealth’s Renewable Energy Target scheme”. However, it appears that the Government was concerned about the costs of operating the Scheme, which ultimately get passed back to all consumers in the form of higher electricity prices.

The NSW Department of Industry and Investment has put together some FAQs on the changes, which you can read here.