The terms and conditions of retail energy contracts, including pricing and other fees, are subject to agreement between customers and retailers.
However, effective 1 January 2018, retailers in NSW are only allowed to charge fees for exiting their contracts early in certain circumstances. Early termination fees are different to disconnection fees, which may still be charged if a customer has to move out of their premises.
Prior to 1 January, IPART set the cap on fees that retailers could charge if they left their fixed-term contracts early. We last reviewed early termination fees in 2013. After 2013 the Premier deferred further reviews.
IPART letter to the Premier regarding the 2017 review of early termination fees
The Premier wrote to IPART to extend the time that IPART is to review the caps on early termination fees from 20 December 2017 to 20 December 2019.
IPART letter to the Premier regarding the 2015 review of early termination fees
The Premier has provided IPART with revised terms of reference for a review of early termination fees in fixed term retail electricity contracts. The revised terms of reference extends the time that IPART is to review the caps on early termination fees from 20 December 2015 to 20 December 2017.