The power of choice: if you live in NSW or Victoria, you can now choose who to buy your electricity from. Should you switch or stay with your current retailer? (Update: electricity and gas).(Australia)(Directory)

Publication: Choice (Chippendale, Australia)

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COPYRIGHT 2002 Australian Consumers' Association

Which phone company are you using these days? Even if it is still Telstra, chances are you've looked at competitors' offers at some point, or been approached by a door-to-door or telemarketing salesperson trying to lure you away from the once monopoly phone retailer.

If you live in NSW or Victoria, you're now faced with a similar situation for your electricity supply. Since the beginning of the year, you've been able to choose who you buy your power from (the industry jargon for this is `full retail contestability' or FRC).

Now that where you live no longer determines which retailer supplies you with electricity in those states, you have three options:

* If you're happy with what you're getting, or simply couldn't be bothered, you don't have to do anything. In this case, you'll stay with your current retailer under independently regulated electricity prices and conditions. You can also go for this option if you want to wait and see how things develop. There's no time limit to change retailers.

* You can accept a new offer from or negotiate a new deal with your current retailer.

* You can sign up with one of the other licensed retailers offering electricity in your area, if they have a better deal for you.

To find out whether you can get a better deal, check What the retailers are offering, page 14. Generally, the higher your household's energy consumption (for example, if you have an air conditioner or a swimming pool), the better your chances are for money savings under a new contract.

For a large number of households, though, the best option will be to stay where you are if saving money is your aim. However, you may have other reasons to change retailers--for example, you may find it convenient to combine your electricity and gas bills into one retailer's dual-fuel product (see Natural gas competition, page 14), or you may be unhappy with your current retailer's service.

The ACT and South Australia are planning to introduce a choice of electricity provider for households by January 2003. Queensland is unlikely to do so for the time being, but...

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