HomeTop StoriesSwitching is on the increase in Victoria

Switching is on the increase in Victoria

The Essential Services Commission in the state of Victoria in Australia has announced that approximately 9000 customers switched retailers in August, an increase of 3000 over the July figures. In August and September an average of about 405 customers switched retailers every business day, compared to just over 100 in February, the month when full retail competition was introduced.

In addition over 43,000 domestic and small business customers have accepted market offers with their existing retailer, while a quarter have indicated that they are likely to seek market offers and enter into new contractual arrangements over the next year. Since the start of competition 3% of small customers have chosen a new supplier, with just over 2% accepting market offers from their existing retailer.

A customer survey has demonstrated a fairly high awareness of the ability to change, and a high degree of interest in exercising choice, but the complexity of the issues and the modest price savings offered are cited as being responsible for the relatively high degree of inertia that has been experienced since full competition was introduced.