The terms and conditions of retail energy contracts, including pricing and other fees, are subject to agreement between customers and retailers. However, to help protect customers, in 2013 the Government asked IPART to set the cap on the fees that retailers can charge customers if they leave their fixed-term contracts early.
We set the cap on exit fees at $130 for the first year of a contract, and $45 for each year of the fixed contract period thereafter.
However, many retailers don’t charge early termination fees. Because competition has been effectively protecting customers, we recommended that the NSW Government extend the time for us to complete further reviews. In September 2017, the Premier announced that the NSW Government would be abolishing early termination fees.
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.